Predicting the aviator


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Appendix A. Regression analyses
A.1 Regression

R
egression is used to examine strength and nature of the relations between
different variables. It shows predictive power of an independent variable on another dependent variable, or relative predictive power of a set of independent variables on one dependent variable. Regression offers the feature of examining predictive relations of a variable on another variable while controlling for a covariate. Its purpose is to make predictions about an outcome variable based on data of a set of independent variables. Example; when variables on sizes of owned houses and heights of income are known, a prediction on the size of the house might be made when looking at the height of income. Regression analysis produces a formula for calculating the predicted value of one variable when we know the actual value of the second variable. To understand explanations of linear and logistic regression basic knowledge of linear equations, probability calculations, and logarithms is required. When basic knowledge needs to be accessed readers are directed to “Statistics for dummies”4 for simple and easy accessible explanations on linear equations and probability calculations. Basic information on the workings of logarithms can be found in “Calculus”5.

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