Chapter 9: Predictive Modeling Using Linear Regression

Overview

Model Building and Assessment

Data Preparation

Building the Linear Regression Model

Overall Fit Statistics

Fit Summary Window

Residual Plot

Details Table

Interpreting the Model

Tuning and Improving the Model

Adjust Input Variables

Removing Outliers

Adding Group-By Variables

Overview

Linear regression is one of the oldest and most commonly used predictive modeling techniques. It quantifies the relationship between one or more predictor variables and a target variable and is commonly used to predict interval or continuous values.

Linear regression is considered the workhorse of statistics-based predictive modeling. The technique is mature, easy to understand and interpret, and widely ...

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