Use cases of regression
The use cases of regression are huge: it is a very commonly used method in many projects. Still, let's see some examples to get a better idea of the different types of use cases that can benefit from regression models.
Use case 1 – Forecasting
A very common use case for regression algorithms is forecasting. In forecasting, the goal is to predict future values of a variable that is measured over time. Such variables are called time series. Although a number of specific methods exist for time series modeling, regression models are also great contenders for obtaining good performance on future prediction performance.
In some forecasting use cases, real-time responses are very important. An example is stock trading, in which the datapoints of stock prices arrive at a huge velocity and forecasts have to be adapted straight away to use the best possible information for stock trades. Even automated stock trading algorithms exist, and they need...
