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I forgot the so-called intercept term in the model:
and we'll use this model with three pieces of data to determine the parameters in our model via a system of three equations in three unknowns:
I got this data off of the cargurus website and grabbed three different cars (I was shooting for "good values") with three different years and three different mileages. Then I solved the linear system for the parameters of the model:
Now I can use that model to determine whether my brother-in-law's car prospect -- a 2003 Camry with 87K miles at 7.5 is a good deal:
Wow! Go out and check out that car! The model says it should cost $10.2K, and it's going for $7.5K.... Got it?
A=[3,109,1;2,104,1;4,99,1]
B=[8;7;10.5]
solution=A \ B
A =
3 109 1
2 104 1
4 99 1
B =
8.0000
7.0000
10.5000
solution =
1.500000
-0.100000
14.400000
There is no sign of a variable name anywhere, but we know what results: we've used the data to find the values of
We write the system in "augmented matrix" form, apply elementary Gaussian row operations, and voila, we have the solution -- the unique solution -- which we write as a vector:
solution =
1.500000
-0.100000
14.400000
Notice
We might write that in a little different way: as vectors.
Notice
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