Last answered:

03 Jul 2023

Posted on:

24 Jun 2023


Is the 45 degree line an indicator because we used the logaritmic transformation?

We look for a best fitting model to the standarized variables that we are dealing with? Or I'm mixing it all up now :D

1 answers ( 0 marked as helpful)
Posted on:

03 Jul 2023



Thank you for reaching out and apologies for the late reply.

The log-transformation of the price column was necessary to obtain a linear relationship with the independent variables.

The 45-degree line in the lesson indicates instead that the predictions of the linear model (y_hat_test) are very close to the actual values of the price (y_test). Both y_test and y_hat_test are log-transformed.

Let me know if anything has remained unclear.

Kind regards,

365 Hristina

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