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Tags: Analytics, Lang:en
Summary
Linear Regression & Correlation
If you are looking for a short beginners guide packed
with visual examples, this book is for you.
Linear Regression is a way of simplifying a group of data
into a single equation. For instance, we all know
Moore’s law: that the number of transistors on a computer
chip doubles every two years. This law was derived by using
regression analysis to simplify the progress of dozens of
computer manufacturers over the course of decades into a single
equation. Correlation is a way of calculating how
much two sets of numbers change together. In addition to
being part of the regression analysis, correlation is heavily
used in investment industries, for instance, to determine if
two stocks are likely to change value together or
independently. This book goes through how to calculate correlation and
linear regression and works through multiple examples of how to
do it. Just as importantly, this book is loaded with
visual examples of what correlation is and how to use linear
regression. This book doesn't assume that you have prior
in-depth knowledge of statistics or that you regularly use an
advanced statistics software package. If you know what an
average is and can use Excel, this book will build the rest of
the knowledge, and do so in an intuitive way.
This Is Not A Textbook
The reason I wrote this book is that there are not a lot of
good examples out there of how to do multiple regression, which
is regression analysis between more than two variables. I
checked half a dozen different sources, including several
textbooks, on how to do multiple regression. In each case, the
source had a lot of information; in some cases dozens of pages;
on how to do the data preparation, how to interpret
results, and potential problems to watch out for, but to
actually do the multiple regression calculation, they all said
to use a software package, like Matlab or Minitab. To put it a different way, those sources are a lot like a
driver’s education class teaching you about setting the
mirrors, adjusting the seat, and fastening the safety belt -
but just when you think you are finally ready to actually start
the car and put it in gear, they tell you to take the bus. This book is different. It does not spend much time on the
niceties of exactly how you should scrub your data, and instead
just shows how to do the calculations, with examples.
This book is more like Grandpa showing you how to actually
drive the old pickup truck from the farmhouse to the barn so
you can get some work done.
What Is In This Book?
There are a number of examples shown in this book, they
include If you are a visual learner and like to learn by example,
this intuitive book might be a good fit for you. Regression and
Correlation are fascinating topics. They are very important
tools that are used in data analysis throughout a wide-range of
industries - so take an easy dive into the topic with this
visual approach! **