as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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explain the mathematical concept of linear regression in simple words.
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linear regression is a statistical method used to predict the value of a dependent variable (outcome) based on one or more independent variables (inputs). it assumes a linear relationship between the independent variables, so that a straight line can be drawn to represent the data. this helps to understand how change in one variable affects the other and to make predictions accordingly.
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