In which scenario would you use linear regression?
Practice Questions
1 question
Q1
In which scenario would you use linear regression?
Predicting customer churn
Forecasting sales revenue based on advertising spend
Classifying emails as spam or not spam
Segmenting customers into different groups
Linear regression is suitable for forecasting sales revenue based on advertising spend, as it involves predicting a continuous variable.
Questions & Step-by-step Solutions
1 item
Q
Q: In which scenario would you use linear regression?
Solution: Linear regression is suitable for forecasting sales revenue based on advertising spend, as it involves predicting a continuous variable.
Steps: 5
Step 1: Identify the problem you want to solve. For example, you want to predict sales revenue.
Step 2: Determine the factors that might affect the outcome. In this case, advertising spend is a key factor.
Step 3: Check if both the outcome (sales revenue) and the factor (advertising spend) are continuous variables. Sales revenue can be any amount, and advertising spend can also vary continuously.
Step 4: Use linear regression to create a model that shows the relationship between advertising spend and sales revenue.
Step 5: Analyze the model to make predictions about future sales based on different levels of advertising spend.
