Module 12: Regression I

Introduction

Finally, we will look at regression which is used for predicting numbers, such as someone’s salary or how much profit a business will make next year. It is also a supervised approach, just like classification, because there is a target variable that we are trying to predict (unlike clustering, where we just want to group things). One of the most commonly used approaches to regression is linear regression, which uses a linear function that takes some inputs (e.g., how old someone is) and then makes a prediction for the target variable (e.g., someone’s salary). The relationship is linear because it is captured by a straight line instead of a curved line. Linear regression has been around since the early 19th century and can be very effective despite its relatively simple form.

Module Objectives

• Summarize how linear regression works
• Summarize how logistic regression works
• Implement linear regression in Excel
• Implement logistic regression in Excel
• Describe the difference between linear and logistic regression

Learning Resources

• Module 12 Readings: First half of Chapter 6
• Module 12 Slides: First half of Chapter 6

Learning Activities

• Module 12 Assignment