Question 40572
How does regression relate to linear algebra?
Linear regression relates to the linear model 
which is the best least-squares fit to a set
of two-dimensional data points.  The word 
regression is used because this technique was 
early on used to show that the children of 
exceptional parents "regress" toward the average
rather than exhibit more exceptional quality.

What are some limitations of linear regression?  What are the risks?
Some regression lines are much better fit to the data
than others.  Therefore not all regression lines can
be used as a good predictor of values: in particular
the regression equation should not be used for prediction
of values which fall outside the range of the data used
to generate the regression equation.
For further information use Google to search "Mathworld
linear regression".
Cheers,
Stan H.