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Types of modeling
modeling flashcards
13
Business
Graduate
02/21/2014

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Term
Decision Tree
Definition
A hierarchical collection of rules that describes how to divide a large collection of records into successively smaller groups of records. Best used for classification/prediction and binary response. Can find local
Term
Linear Regression
Definition
Used for classification and prediction. Estimation. Captures local patterns.
Term
Logistic regression
Definition
Used for binary outcomes such as Yes/No, good/bad. Also used for classification and prediction.
Term
Neural Network
Definition
Used for classification and prediction. Estimation. Can find local and global patterns.
Term
correlation matrix
Definition
how do variables correlate
Term
histogram
Definition
Used to explore 1 variable at a time.
uses continuous variables only
continuous= any real number value
Term
bar graph
Definition
factor variables only
factor = categorical
Term
bin numeric variable
Definition
change continuous to categorical variable
Term
scatter plots
Definition
Visual display of relationship between CONTINUOUS variable
continuous = any real number value
Term
line graph
Definition
Used when one of the variables is sorted, especially by time.
contiuous and time factor variables
Term
box plots
Definition
Relationship between continuous variable and categorical/factor variable
Term
scatter plot matrix
Definition
Relationship among several continuous variables.
Term
plot of means
Definition
visualize the effect of a continuous predictor variable on a binary target variable
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