Chapter 6. Forecasting Numeric Data – Regression Methods

Mathematical relationships help us to make sense of many aspects of everyday life. For example, body weight is a function of one's calorie intake; income is often related to education and job experience; and poll numbers help to estimate a presidential candidate's odds of being re-elected.

When such patterns are formulated with numbers, we gain additional clarity. For example, an additional 250 kilocalories consumed daily may result in nearly a kilogram of weight gain per month; each year of job experience may be worth an additional $1,000 in yearly salary; and a president is more likely to be re-elected when the economy is strong. Obviously, these equations do not perfectly fit every situation, but we expect that they are reasonably correct most of the time.

This chapter extends our machine learning toolkit by going beyond the classification methods covered previously and introducing techniques...