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Business Analytics · MBA Core · Professional Certifications

Business Analytics Regression and Predictive Modeling

Linear regression interpretation, logistic regression, overfitting, validation and model metrics.

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42 basic cards for MBA Core Business Analytics. It opens with "What does a regression coefficient measure?" and "What is the intercept in a regression equation?". Study it alongside the other MBA Core sets below.

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What does a regression coefficient measure?
Show answerThe change in the dependent variable for a one-unit increase in the independent variable, holding others constant
What is the intercept in a regression equation?
Show answerThe predicted value of the dependent variable when all independent variables equal zero
What does R-squared measure?
Show answerThe proportion of variance in the dependent variable explained by the independent variables
What is a residual?
Show answerThe difference between the observed value and the predicted value for a data point
How do correlation and regression differ?
Show answerCorrelation measures the strength of association between two variables; regression predicts one variable from another
What does adjusted R-squared account for?
Show answerThe number of predictors in the model, penalizing for adding variables that do not improve fit
What is multicollinearity?
Show answerHigh correlation among independent variables, which inflates standard errors and reduces reliability of coefficients
What are the five key assumptions of linear regression?
Show answerLinearity, independence of errors, homoscedasticity, normality of residuals, and no multicollinearity
What is heteroscedasticity?
Show answerNon-constant variance of residuals across different levels of the independent variable
What is autocorrelation?
Show answerCorrelation of residuals with their own past values, common in time-series data
What is overfitting?
Show answerA model that learns the training data too well, including its noise, resulting in poor generalization to new data
How does overfitting affect performance metrics?
Show answerTraining metrics appear excellent while test metrics degrade, showing a large gap between them
What is underfitting?
Show answerA model that is too simple to capture the underlying pattern in the data
What is train-test split?
Show answerDividing data into two subsets to train the model on one and evaluate it on the other
What is k-fold cross-validation?
Show answerDividing data into k subsets, training k models each leaving out one fold, then averaging performance metrics

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