5. Describe one limitation of using regression equations to make predictions about outcomes. Include an example...

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5. Describe one limitation of using regression equations to make predictions about outcomes. Include an example...

5. Describe one limitation of using regression equations to make predictions about outcomes. Include an example to illustrate this.

math Statistics-And-Probability

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Answer 1

Answer #1

One of the limitations of using regression equations to make predictions about outcomes is:

Linear regressions are sensitive to outliers.

E.g. if most of your data lives in the range (100,150) on the x-axis, but you have one or two points out at x= 500, this could significantly swing your regression results.

Similarly, if you build your regression on the range x in (100,150), and then try to use that model to predict a y-value for x = 500, this is pretty significant extrapolation and is not necessarily going to be accurate.

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Answer 2

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