Our real-time example will be used to show some simple predictions made as regression models built at the top of a data gathered by a very small virtual cellphone service provider. We want to estimate how many text messages and voice calls a new customer will make. This will help us to recommend a proper prepaid service plan to the new customer.
Our prediction will be based on the knowledge that we will put into our predictive model. The results of the prediction will be very approximate because the amount of data is rather small and the model will also have a very limited set of input parameters.
Before we start to develop anything, we will need to set up a basic environment. The following section will briefly suggest the necessary configurations for the success of our project.
