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Data Forecasting and Segmentation Using Microsoft Excel

You're reading from   Data Forecasting and Segmentation Using Microsoft Excel Perform data grouping, linear predictions, and time series machine learning statistics without using code

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Product type Paperback
Published in May 2022
Publisher Packt
ISBN-13 9781803247731
Length 324 pages
Edition 1st Edition
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Author (1):
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Fernando Roque Fernando Roque
Author Profile Icon Fernando Roque
Fernando Roque
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Table of Contents (19) Chapters Close

Preface 1. Part 1 – An Introduction to Machine Learning Functions
2. Chapter 1: Understanding Data Segmentation FREE CHAPTER 3. Chapter 2: Applying Linear Regression 4. Chapter 3: What is Time Series? 5. Part 2 – Grouping Data to Find Segments and Outliers
6. Chapter 4: Introduction to Data Grouping 7. Chapter 5: Finding the Optimal Number of Single Variable Groups 8. Chapter 6: Finding the Optimal Number of Multi-Variable Groups 9. Chapter 7: Analyzing Outliers for Data Anomalies 10. Part 3 – Simple and Multiple Linear Regression Analysis
11. Chapter 8: Finding the Relationship between Variables 12. Chapter 9: Building, Training, and Validating a Linear Model 13. Chapter 10: Building, Training, and Validating a Multiple Regression Model 14. Part 4 – Predicting Values with Time Series
15. Chapter 11: Testing Data for Time Series Compliance 16. Chapter 12: Working with Time Series Using the Centered Moving Average and a Trending Component 17. Chapter 13: Training, Validating, and Running the Model 18. Other Books You May Enjoy

Chapter 10: Building, Training, and Validating a Multiple Regression Model

In this chapter, we are going to apply our knowledge of the statistical tests of relationship confidence to build a predictive model.

Because we are now working with a multivariable regression model, we have to explore the most influential variables to build the best prediction case.

We will work with a case with several values, and we will use our judgment and statistical tests to ascertain which two variables have more influence over the prediction that we are looking for.

We have to apply our judgment because it could be the case that the f-statistics and p-value accept the null hypothesis that the slope is equal to zero for a variable. However, the relationship is validated by the coefficients of determination and correlation, as well as by the f-statistics. f-statistics is a test to reject the hypothesis that the slope is equal to zero, meaning that there is no relationship between the regression...

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