August 2015
Beginner to intermediate
294 pages
5h 20m
English
Content preview from Mastering Python for Data ScienceBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
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Chapter 6. Performing Predictions with a Linear Regression
Linear regression analysis is the most widely used of all statistical techniques: it is the study of linear, additive relationships between variables. It's widely used in various industries to create models, which will help in a business. For example, in the retail industry, there are various factors affecting the sale of a product. These factors could be the price, promotions, or seasonal factors, to name a few. A linear regression model helps in understanding the influence of each of these factors on the sales of a product as well as to calculate the baseline sales, which is basically the number of sales of this product in the event that there were no external factors, such as price, ...
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