Learn Data Science from the Best Tutors

  • Affordable fees
  • 1-1 or Group class
  • Flexible Timings
  • Verified Tutors

Search in

Practical use of Linear Regression Model in Data Science

Ashish R.
21/11/2016 0 0

Multiple regressions are an extension of simple linear regression. It is used when we want to predict the value of a continuous variable based on the value of two or more other independent or predictor variables. The variable we want to predict is called the dependent variable (or sometimes, the outcome, target, response variable) and usually denoted by Y. The variables we are using to predict the value of the dependent variable are called the independent variables (or sometimes, the predictor, explanatory or repressors variables and usually denoted by X1, X2, X3....and so on. By this modeling technique, we are going to make a linear functional relationship between Y and X1, X2, X3…..i.e Y=f(X) where X is multidimensional vector. 

 For example, you could use multiple regressions to understand

  •         Whether exam performance can be predicted based on revision time, test anxiety, lecture attendance, and gender. (University data)
  •          Whether daily number of cigarette consumption can be predicted based on smoking duration, age when smoking, smoker type, income, and gender started. (Health care data)
  •          Whether sales/revenue of a retail store is driven by advertisement spend, square foot area of the store, number of labors deployed,  experience of the store manager, and several demographic and macroeconomic factors ( store Retail Analytics)
  •          Whether credit card limit depends on employees age, salary, csat score, credit score, level of education, job type, number of other products hold (Retail Banking)
  •          Whether the cholesterol level in blood depends on foot habit, physical exercise, body weight and some genetic factors (Hospital Health data)
  •        Whether production yield of a company depends on temperature, pressure, no of labors deployed, climate, rain fall and local tax (Industrial production data)

 This model is also used across various industries to solve diverse problems. The following are the list of industry types where this model is used to solve various interdisciplinary problems 

 Multiple regressions also allow you to determine the overall fit (variance explained of dependent variable Y) of the model and the relative contribution of the predictor variables. For example, you might want to know how much of the variation in production yields can be explained by production hours, break down hours, "as a whole", but also the "relative contribution" of each independent variable in explaining the variance.

There are various analytics tool  available to perform Linear Regression Model. SAS, R, SPSS, Python are the most popular data mining tool that are used in the Industry.  Each tool has some pros and cons to use. Briefly saying SPSS do not require any programming skill to perform modeling exercise whereas others need some  coding experience. The key factor of using any analytical tool to fit a model is to get the knowledge of how to interpret the model output in making business decisions. In this connection little bit of theoretical knowledge or the math behind this model is important to know. 

 In a nutshell the following are the key parameters to decide how good or bad a linear regression model is :

 -  R square -> higher the R square better the relationship between dependent and independent variables.

- The variable selection process has to be well described and the selected variabe1s should be statistically significant at some level of significance (alpha level 0.05/0.01)

- The sign of the beta estimate should be consistent with underlying buisness hypothesis

- MAPE should be within cosiderable range in training and test sample

- Residuals should be independent and more or less normally distributed. It would hardly be perfectly normally distributed but it should be approximately normally distributed.





0 Dislike
Follow 0

Please Enter a comment


Other Lessons for You

Lesson: Hive Queries
Lesson: Hive Queries This lesson will cover the following topics: Simple selects ? selecting columns Simple selects – selecting rows Creating new columns Hive Functions In SQL, of which...

Use Data Science To Find Credit Worthy Customers
K-nearest neighbor classifier is one of the simplest to use, and hence, is widely used for classifying dynamic datasets. Click on the link to see how easy it is to classify credit-worthy vs credit-risk...

Why do I need to know the Data science concepts ?
If you are working for Data analysis activity in a project, you need to know the data mining concepts. The Data science handles a series of steps in this data mining activity. By learning this subject...

TOP 10 Tools for Data Science
TOP 10 Tools for Data Science1. Python2. SQL3. R4. Tableau5. PowerBI6. Java7. Julia8. Scala9. SAS10. ExcelTOP 10 Websites for Data Science1. Coursera3. EdX4. Udacity5. Kaggle6. Analytics Vidhya7. KDNuggets8....

A Helpful Q&A Session on Big Data Hadoop Revealing If Not Now then Never!
Here is a Q & A session with our Director Amit Kataria, who gave some valuable suggestion regarding big data. What is big data? Big Data is the latest buzz as far as management is concerned....

Looking for Data Science Classes?

The best tutors for Data Science Classes are on UrbanPro

  • Select the best Tutor
  • Book & Attend a Free Demo
  • Pay and start Learning

Learn Data Science with the Best Tutors

The best Tutors for Data Science Classes are on UrbanPro

This website uses cookies

We use cookies to improve user experience. Choose what cookies you allow us to use. You can read more about our Cookie Policy in our Privacy Policy

Accept All
Decline All

UrbanPro.com is India's largest network of most trusted tutors and institutes. Over 55 lakh students rely on UrbanPro.com, to fulfill their learning requirements across 1,000+ categories. Using UrbanPro.com, parents, and students can compare multiple Tutors and Institutes and choose the one that best suits their requirements. More than 7.5 lakh verified Tutors and Institutes are helping millions of students every day and growing their tutoring business on UrbanPro.com. Whether you are looking for a tutor to learn mathematics, a German language trainer to brush up your German language skills or an institute to upgrade your IT skills, we have got the best selection of Tutors and Training Institutes for you. Read more