Linear regression is a statistical model to understand the relationship between the dependent and the independent variable.Linear Regression helps to predict the relationship between the two variables. For eg say, the relation between the sales and the promotion spending can be predicted .Thus , it helps to understand how much the dependent variable changes when one or more independent variable change.Let’s dig real quick to understand how Linear Regression is implemented with an example.

In this example ,we are going to predict the sale of the house in an area based on its square feet value.Take a closure look on the below scatter plot

Here, **X-axis** represents the** Square feet** and the **Y axis** represents the **Price** .Once we derive the best fit line (that connects most of the data points)based on the Linear Regression equation , we can easily predict the price of an house with **3300 **sqft as roughly around **628700**

**Simple Linear Equation** is derived from the below formula

Here, y is the dependent variable ,m is the gradient or slope , x is the independent variable and b is the y-intercept.

In our case, it will be **Price = m * Square feet + b**

Let us directly jump to **Python code** for calculating the predictions

**Step 1 : **Import all the necessary libraries.

**import numpy as np
import pandas as pd
import matplotlib.pyplot as plt
import seaborn as sns
from sklearn.model_selection import train_test_split
from sklearn.linear_model import LinearRegression**

**Step 2**:Loading our data in Panda dataframe

**data=pd.read_csv('/kaggle/input/house-price/House Price Prediction.csv')**

**data**

**Output**

**Step 3**: We are plotting a scatter plot , just to get an idea about data points.

**plt.figure(figsize=(12,6))
sns.pairplot(data,x_vars=[‘Square feet’],y_vars=[‘Price’],size=7,kind=’scatter’)
plt.xlabel(‘Square Feet’)
plt.ylabel(‘Price’)
plt.title(‘House Price Prediction’)
plt.show()**

**Output**

**Step 4**:Linear Regression object is created and we are parsing our available data (the **square feet**(X axis) and the **price**(Y axis)

**lr = LinearRegression()
lr.fit(data[[‘Square feet’]],data.Price)**

**Output**

**Step 5: **If suppose, you want to predict the price of a house with squarefeet **3300** , it calculates as =>**628715.75 **

**lr.predict([[3300]])**

**Output**

Ahh !! Wait how does it calculated !!! Hmm..Let’s travel back to the equation . **y=mx+b**, here the **slope m** is calculated with the help of **coef_ **and **b**, the **intercept** is calculated using **intercept_**

**lr.coef_**

**Output**

**lr.intercept_**

**Output**

So now ,in our case it will be like

**price = m * squarefeet + b**

**135.78767123 * 3300 + 180616.43835**

**Output**

Now it is very clear how the square feet **3300** was predicted in **Step 5 .**

**Conclusion -**

This context vividly explains how the values are calculated using the linear regression model .Large chuck's of data can be parsed in as an array and the values can be predicted instead of parsing as single value as shown in the above example

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