Predictive Analytics

Dr. Alekh Gour

Assistant Professor
Goa Institute of Management, Goa
Types of Machine Learning
Supervised
Machine Learning

Unsupervised
Machine Learning

Reinforcement
Machine Learning
Regression
• Regression is a Predictive Modelling Technique.

• Regression is used to understand and quantify Cause-Affect

relationship.

• It estimate the relationship between a dependent (Target) and an

independent variable (Predictor)
Flipkart Case
• By How Much?

• What is Increase in sale because of 20% discount or 30% discount.

• This is called as “Quatification of Impact”.

 What happen to sale of products in Flipkart if there is a Big Billion sale?

Cause: Big Billion Sale (Discount) Affect: Sale of Products

Regression model establishes existence of association
between two variables, but not causation.
BCCI Bans Girlfriends and Wives

Girlfriends and wives create such a “distraction” that Indian

batsmen can’t make runs, bowlers fail to take wickets and
fielders drop simple catches.

Regression is not designed to capture causal

relationship
 Regression - Definition

A statistical technique that attempts to determine

the existence of a possible relationship between one
dependent variable (usually denoted by Y) and a
collection of Independent variables.

Regression is used for generating new hypothesis

and for validating a hypothesis
 Interesting Hypotheses
• Good looking couples are more likely to have girl
child(ren)!
• Married people are more happier than singles!!!
• Vegetarians miss fewer flights.
• Black cars have more chance of involving in an
accident than white cars in moon light.
• Women use camera phone more than men.
• Left handed men earn more money!
• Smokers are better sales people.
• Those who whistle at workplace are more efficient.
 Types of Regression

Regression
Models
One More than One
independent independent
variable variable

Simple Multiple
Regression Regression

Linear Non-linear Linear Non-linear

HR Case
HR Case
 Types of Regression

• Simple linear regression – refers to a regression

model between two variables.

Y   0  1 X 1  
• Multiple linear regression – refers to a regression
model on more than one independent variables.
Y   0  1 X 1   2 X 2  ...   k X k  

• Nonlinear regression.
1
Y  0   X 2 3  
1   2 X 1
Thank You !!