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The Use of Multivariate Analysis Techniques

In: Data Mining for Managers

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  • Richard Boire

Abstract

The most commonly used techniques in predictive modeling are linear and logistic regression. The statistics in linear regression predict outcomes with a continuous range of values; logistic regression predicts outcomes that are categorical in nature. The most commonly used logistic routines are used to predict yes/no behaviors, such as response, attrition, or credit default. The outcome derived can also be a set of rules such as CHAID rather than a score, which is the predicted outcome of either logistic or linear regression.

Suggested Citation

  • Richard Boire, 2014. "The Use of Multivariate Analysis Techniques," Palgrave Macmillan Books, in: Data Mining for Managers, chapter 0, pages 125-132, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-40619-4_15
    DOI: 10.1057/9781137406194_15
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