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Data Forecasting and Segmentation Using Microsoft Excel

You're reading from   Data Forecasting and Segmentation Using Microsoft Excel Perform data grouping, linear predictions, and time series machine learning statistics without using code

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Product type Paperback
Published in May 2022
Publisher Packt
ISBN-13 9781803247731
Length 324 pages
Edition 1st Edition
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Author (1):
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Fernando Roque Fernando Roque
Author Profile Icon Fernando Roque
Fernando Roque
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Table of Contents (19) Chapters Close

Preface 1. Part 1 – An Introduction to Machine Learning Functions
2. Chapter 1: Understanding Data Segmentation FREE CHAPTER 3. Chapter 2: Applying Linear Regression 4. Chapter 3: What is Time Series? 5. Part 2 – Grouping Data to Find Segments and Outliers
6. Chapter 4: Introduction to Data Grouping 7. Chapter 5: Finding the Optimal Number of Single Variable Groups 8. Chapter 6: Finding the Optimal Number of Multi-Variable Groups 9. Chapter 7: Analyzing Outliers for Data Anomalies 10. Part 3 – Simple and Multiple Linear Regression Analysis
11. Chapter 8: Finding the Relationship between Variables 12. Chapter 9: Building, Training, and Validating a Linear Model 13. Chapter 10: Building, Training, and Validating a Multiple Regression Model 14. Part 4 – Predicting Values with Time Series
15. Chapter 11: Testing Data for Time Series Compliance 16. Chapter 12: Working with Time Series Using the Centered Moving Average and a Trending Component 17. Chapter 13: Training, Validating, and Running the Model 18. Other Books You May Enjoy

Chapter 8: Finding the Relationship between Variables

The linear regression algorithm is a supervised machine learning algorithm. We need to train and adjust the linear model before making predictions. We have to understand the data before applying linear regression to be sure that it will be useful for predictions.

You need a certain level of confidence that the variable you want to predict has a relationship with the variables that influence it. If you don't test the extent of this relationship, the predicted values will be errors, and the results will be garbage.

In this chapter, we will learn two methods to test the dependence of the variables to ensure our model's accuracy. We will measure the difference between the expected values from the training dataset and the model's results, and use statistical methods to examine the significance of the relationships between the variables to see whether they are useful for predicting values.

The goal of measuring...

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