CHAPTER 6

Multiple Regression

Regression models allow you to include as many independent variables as you want. In traditional regression analysis, there are good reasons to limit the number of variables. The spirit of exploratory data mining, however, encourages examining a large number of independent variables. Here we are presenting very small models for demonstration purposes. In data mining applications, the assumption is that you have very many observations, so that there is no technical limit on the number of independent variables.

Data Series

In Chapter 5 we covered simple regressions, using only time as an independent variable. Often we want to use more than one independent variable. Multiple ordinary least squares (OLS) regression allows ...

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