When is linear regression used?
Linear regression is used to solve many real-world problems, including the following:
- Sales forecasting
- Predicting optimum product prices
- Quantifying the causal relationship between an event and the response, such as in clinical drug trials, engineering safety tests, or marketing research
- Identifying patterns that can be used to forecast future behavior, given known criteria—for example, predicting insurance claims, natural disaster damage, election results, and crime rates