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sa2 - Coggle Diagram
sa2
Simple Linear Regression
What is the causal effect of x on y ?
Example
New product on profits
user ratings on sales
2 ways to find causal effect
Experiments
Random Controlled Trials (RCTs)
A/B Testing
Observational Data
What is the predicted value of y for a given x ?
Example
Predict price of house for a given size
Predict sales for a given query and consumer characterstics
Forecasting : Special Case for predicting future values
Visualise with Scatterplot
Direction
Curvature
Strength
Quantifying Association
Measure for Linear association
Covariance
Function : Cov(x, y) = E[(x − µx )(y − µy )]
Properties
Reflects Direction of relationship
Magnitude depends on scale of attributes
Correlation
Function : Corr(x, y) = Cov(x, y)/(σxσy)
Properties
−1 ≤ Corr(X, Y ) ≤ 1
Corr(X,Y) = 1 ; strong, positive, linear