Introduction
In the realm of data-driven decision making, understanding customer behavior is pivotal for optimizing business strategies. Building on our exploration of classification techniques, this chapter shifts focus to regression analysis, specifically linear regression, to predict numerical values such as a customer’s annual spending. Linear regression helps us discover relationships within data, enabling predictions based on observed patterns.
This chapter will guide you through the process of building a predictive model that estimates annual spending by customers based on their interactions with a digital platform. We aim to deepen your understanding of linear regression, demonstrating how to prepare, process, and utilize datasets to construct accurate and reliable models.
As we progress, we will explore various techniques to enhance model accuracy and handle complex data scenarios:
- Utilizing advanced regularization techniques to improve model stability...
