regression
What It Means
Regression is a machine learning technique that predicts specific numerical values based on historical data patterns. Unlike classification which puts things into categories, regression gives you exact numbers like predicting a house will sell for $347,500 or that customer satisfaction will be 7.3 out of 10.
Why Chief AI Officers Care
Regression models power critical business forecasting like revenue projections, demand planning, and risk assessment where precise numerical predictions drive major decisions. Poor regression models can lead to significant financial losses through inaccurate forecasts, while good ones provide competitive advantage through better planning and resource allocation.
Real-World Example
A retail company uses regression to predict exactly how many units of each product to stock in each store next month, factoring in historical sales, seasonality, local demographics, and weather forecasts to minimize both stockouts and excess inventory costs.
Common Confusion
People often confuse regression with classification - regression predicts exact numbers while classification sorts things into categories. Many also assume regression always means linear relationships, but modern regression can capture complex non-linear patterns.
Industry-Specific Applications
See how this term applies to healthcare, finance, manufacturing, government, tech, and insurance.
Healthcare: In healthcare, regression models predict continuous clinical outcomes like patient length of stay, blood pressure readin...
Finance: In finance, regression models are fundamental for risk assessment, portfolio optimization, and regulatory capital calcul...
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Includes:
- 6 industry-specific applications
- Relevant regulations by sector
- Real compliance scenarios
- Implementation guidance
Technical Definitions
NISTNational Institute of Standards and Technology
"Regression is a process of predicting the value to a yes or no label provided it falls on a continuous spectrum of input values, subcategory of supervised learning."Source: Ranschaert,_Erik
"the prediction of an exact value using a given set of data"Source: Saleh_Alkhalifa_ML_in_Biotech
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