## 7.7 Prediction: Linear model (Equation) (1)

• Linear Model = LM = Linear regression model
• Aim (normally): Model (also understand) relationship between outcome variable (output) und 1+ explanatory variables (features)
$$y_{i} = \underbrace{\color{blue}{\beta_{0}} + \color{orange}{\beta _{1}} \times x_{1i} + \color{orange}{\beta _{2}} \times x_{2i}}_{?} + \underbrace{\color{red}{\varepsilon}_{i}}_{?}$$

• Q: How do we also call $$\color{blue}{\beta_{0}}$$, $$\color{orange}{\beta _{1}}$$ and $$\color{orange}{\beta _{2}}$$?