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The video tutorial begins by explaining that while linear regression typically focuses on finding the line of best fit through linear data points, this session will explore fitting a circular shape to data points arranged in a circular pattern. The tutorial aims to identify the center and radius of the best fit circle, which may appear oval. Before tackling this, the presenter reviews the basic concept of linear regression using two data points with coordinates (x1, y1) and (x2, y2). The goal is to derive the line of best fit through these points by setting up two equations with unknowns for the slope (m) and y-intercept (b), leading to a system of equations that can be solved.