Regression

Regression is a way to quantify the relationship between two or more variables. It predicts 108.30.20 Data Analysis - Predictive analysis a “dependent variable” from a set of “predictor variables”, which are called the “independent variables”.

Regression is an ideal tool for understanding the drivers of demand and for demand prediction. Particularly good for determining optimal prices.

Linear regression is the most common type. Linear regression draws a linear line down the middle of the plot of independent variables. Say, a plot of Price & Quantity, a regression would draw a line through the middle of the plotted points. Then, given either of the independent variables you can predict a likely value for the other variable. !

Regression models

113.020.010.10 Regression - Regression Models

References: 1. https://www.coursera.org/learn/wharton-customer-analytics/home - Week 3 slides, Iyenger 2.