Predictive Analytics Descriptive Answer Key
Predictive Analytics Descriptive Answer Key
Where:
- Y is the dependent variable.
- β0 is the intercept.
- β1, β2,..., βn are the coefficients of the predictors.
- X1, X2,..., Xn are the independent variables.
- ε is the error term.
Importance:
1. It is simple to implement and understand.
2. It helps identify trends and relationships in data.
3. It is widely used for predictive analysis in business, economics, and more.
Example:
Suppose we want to predict house prices (Y) based on area (X1), number of bedrooms (X2),
and location rating (X3):
Price = 5000 + 300(Area) + 1500(Bedrooms) + 2000(Location)
Importance:
1. It improves accuracy by considering multiple predictors.
2. It helps analyze the impact of each predictor on the outcome.
A good model minimizes both bias and variance to achieve optimal performance.
**Diagram:**
Boosting reduces bias and variance, making it powerful for classification tasks.
Key Concepts:
1. **Hyperplane**: A decision boundary separating classes.
2. **Support Vectors**: Data points closest to the hyperplane.
3. **Kernel Trick**: Allows SVM to classify nonlinear data by mapping it to higher-
dimensional space.
Example:
Classifying emails as spam or non-spam:
- Input: Features like word frequency, subject line keywords.
- SVM identifies the optimal boundary (hyperplane) separating spam and non-spam emails.