Curve fitting is a mathematical technique used to create a curve that best represents a set of data points. By applying various algorithms, such as linear regression or polynomial regression, one can find a function that minimizes the difference between the observed data and the values predicted by the model. This process is essential in many fields, including engineering, economics, and machine learning, as it helps in making predictions and understanding relationships within data. The goal is to achieve a balance between accuracy and simplicity, ensuring that the model generalizes well to new data.