Section 8 Prediction with Regression

We are continuing our topic of prediction, this time adding a new tool: linear regression.

Recall that we predict (estimate/guess) some unknown using information we have – and do so as accurately and precisely as possible.

1. Choose an approach
   • Using an observed (known) measure as a direct proxy to predict an outcome
   • Using one or more observed (known) measures in a regression model to predict an outcome
   • (Beyond the course) Using a statistical model to select the measures to use for predicting an outcome
2. Assess accuracy and precision
3. Iterate to improve the prediction/classification
   • Often, we repeat steps 1-3 until we are confident in your method for predicting.

Eventually, after you have tested the approach and are satisfied with the accuracy, you may start applying it to new data for which you do not know the right answer.