November 2006
Beginner to intermediate
292 pages
7h 26m
English
book
Making Sense of Data: A Practical Guide to Exploratory Data Analysis and Data Mining
by Glenn J. Myatt
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7.6 OTHER METHODS
There are many methods for building both classification and regression models. The following section briefly describes a number of alternative approaches. More details on these approaches are referenced in the further reading section of this chapter.
- Multiple linear regressions: The method described for simple linear regression can be extended to handle multiple descriptor variables. A similar least squares method is used to generate the equation. The form of the equation is y = a + b1x1 + b2x2 + . . . + bnxk where y is the response, x1 to xn are the descriptor variables, a is a constant, and b1 to bn are also constants. For example, when attempting to predict a potential customer's credit score (CS) a multiple linear regression equation could be generated. The equation could be based on the number of missed payments to other credit cards (MP), the number of years with no missed payments (NMP), and the number of good standing loans (GSL), as for example in the following equation:
Table 7.19. Optimization of neural network
CS = 15 – 18 × MP + 12 × NMP + 10 × GSL
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