Linear regression analysis is one of the most important statistical techniques

used to determine the relationships among variables under study by drawing a best
fitting straight line. The main goal of the linear regression is to estimate the value of the
dependent variable xi using the value of the independent variables xj and thus it is used
widely in the field of predictive modeling and data analytics. The technique is
extensively employed in different fields like finance, economics, biology, and social
sciences to determine and analysis the correlation matrices between two or more
variables. Benefits of using simple linear regression include the following: It is easy to
perform Therefore, one can easily work with this type of regression analysis Easy to
explain As a result, while forming conclusions and explaining the results of analysis, the
explanation focuses on mechanisms that can be explained simply Well defined Figures
of strength and direction of relationship between variables can be quantified It is cheap,
and it gives on mathematical equation to follow in the prediction process. However, like
with most linear models, there are some drawbacks of using the linear regression. This
is based a straight line form of the relationship holding between the variables and may
not always be true. It is greatly influenced by outliers and it has a condition that the
residuals (errors) of the model has to be normally distributed and equally variable
(homoscedasticity). Furthermore, the use of linear regression may also have issues of
multicollinearity the occurrence of strong correlation between predictors leading to
approximated estimation of coefficients of the model. Some of the areas, where linear
regression analysis can be applied are given below: Estimation of house price
dependent on area, number of rooms, location etc., prediction of sales revenue based
on advertising expense, seasonality and economic indicators, and calculating the effect
of educational interventions on students results with reference to study time, class
attendance and previous academic performance etc. In each of these situations, the
linear regression is used to predict relationships that exist between the variables and
the analysis of those relationships wherever they exist is helpful in many managerial
decision-making situations. For instance, in real estate linear regression would assist in
finding how much a house should be priced depending on a given attribute and thus aid
the buyers and sellers. In the business environment, linear regression can be helpful
when it comes to predicting future sales, and in consequence, changing the marketing

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strategies for the allocation of resources. Linear regression can be used in education
where policymakers and educators are in a position to compare the effectiveness of
different teaching methods and also channel resources to the programs that bring the
most significant change. In spite of these drawbacks, the linear regression model still
stands strong as an instrument for data classification and prediction while providing a
simple and clear answer to the question of complex data interdependence. Through the
use of linear regression, decision makers, analyst and researchers are able to forecast
and predict new events in the future and in turn open new frontiers and advance the
society in any field.

Logistic regression is a mathematical technique employed to examine datasets

containing a dependent variable with two possible forms and multiple independent
variables related to the dependent variable. The primary goal of logistic regression is to
forecast the likelihood of a particular class or even outcomes such as pass/fail, win/lose,
alive/dead, and healthy/ill. Predicting the likelihood of a binary result given one or more
predictor variables is currently applicable to a variety of fields, including machine
learning, medicine, and the social sciences. Among its many advantages are its
simplicity of interpretation and understanding, as well as the fact that it produces
coefficients that may be used to determine the relative importance of each independent
variable to the outcome. It can be optimized with techniques like stochastic gradient
descent if further data is obtained, and it is also computationally viable. However,
utilizing logistic regression has several drawbacks. Notwithstanding the benefits of this
regression, it has many drawbacks. Specifically, it does not always hold that the
independent factors and the dependent variable's log chances are directly correlated.
Instances when the independent variables have some degree of correlation with one
another, known as multicollinearity, and outliers are also issues. In addition, achieving
high levels of accuracy while using logistic regression requires working with a large
sample size. Few examples of how logistic regression is applied includes the following,
one can predict if a certain patient has a certain disease based on the symptoms or
history they present, or detect if an email is spam or not based on the content, or even if

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a certain customer will buy the product based on what they browse or purchase. In the
medical field, it is possible to use logistic regression to work out the probability that a
certain disease, for example diabetes, will affect a patient depending on his/her age,
weight among other family issues. In email filtering, logistic regression assist in sorting
emails as spam or not spam owing to some characteristics such as the existence of
certain words, or the post origin address. Logistic regression in marketing can also be
applied in the determination of the likelihood of a customer to accept a marketing
promotion offer based on his or her previous purchasing history and age. Still, logistic
regression is one of the most effective and famous approaches in binary classification
problems since it provides an opportunity to analyze and predict binary outcomes
simply. Analyzing and making predictions with help of logistic regression let analysts
and researchers make decisions and improve the state of affairs and the progress in
definite areas and branches of knowledge.

James, G., Witten, D., Hastie, T., & Tibshirani, R. (2013). An introduction to statistical
learning: With applications in R. New York: Springer.
https://link.springer.com/book/10.1007/978-1-0716-1418-1

Montgomery, D. C., Peck, E. A., & Vining, G. G. (2012). Introduction to linear regression
analysis (5th ed.). Hoboken, NJ: Wiley. https://link.springer.com/book/10.1007/978-1-
0716-1418-1.

Seber, G. A. F., & Lee, A. J. (2012). Linear regression analysis (2nd ed.). Hoboken, NJ:
Wiley.
https://www.academia.edu/32085934/Linear_Regression_Analyisis_2nd_edition_Georg
e_A_F_Seber_Alan_J_Lee_pdf

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Hosmer, D. W., Lemeshow, S., & Sturdivant, R. X. (2013). Applied logistic
regression (3rd ed.). Hoboken, NJ: Wiley.
https://onlinelibrary.wiley.com/doi/book/10.1002/9781118548387

Menard, S. (2002). Applied logistic regression analysis (2nd ed.). Thousand Oaks, CA:
Sage Publications. https://methods.sagepub.com/book/applied-logistic-regression-
analysis

Kleinbaum, D. G., & Klein, M. (2010). Logistic regression: A self-learning text (3rd ed.).
New York, NY: Springer. https://link.springer.com/book/10.1007/978-1-4419-1742-3

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