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Week 9 Question Part II Linear regression determines the straight line that best fits the data. It doesn’t make the fit good. An exponential regression determines the exponential expression that best fits the data. It can have a poorer or a better fit than the linear fit for a given case. A complex regression may have a number of different variables and a number of different expressions for those variables. Taking this approach we can get as good a fit as you want. If the data is velocity versus time, the laws of Physics suggest there should be a linear relationship and the choice of regression type to use follows easily. If the data are price and demand, how do you decide the appropriate type of regression to use? What advice would you give on regression to new analysts just joining your company?
