Models

There are three different types of predictive models:

• Statistical models
• Decision tree models
• Machine learning models

Statistical models

The first thing that the statistical models identify is which predictors are most important in a model. The statistical models also create an equation that allows you to make predictions. For example, as we can see in the following screenshot, the coefficients that are part of the prediction equation have been highlighted:

The following screenshot highlights the equation to predict current salaries:

In the following screenshot, we can see that we take the coefficient for the variable beginning salary and we multiply it by the actual beginning salary:

Now, we take the coefficient...