Solving the business question
What are we trying to do with regression? If you are trying to solve a business question that helps predict probabilities or scoring, then regression is a great place to start. Business problems that require scoring are also known as regression problems. In this example, we have scored the likelihood of the individual earning above or below fifty thousand dollars per annum.
The main objective is to create a model that we can use on other data, too. The output is a set of results, but it is also an equation that describes the relationship between a number of predictor variables and the response variable.
What do the terms mean?
For example, you could try to estimate the probability that a given person earns above or below ...