Those six checks, and the techniques that you can use to solve some of the most common regression analysis problems, are resources that can definitely make your work easier. This document examines the six checks you'll want to pass to have confidence in your model. Chances are, if you have ever tried to build your own regression model, this is nothing new to you.įortunately, when you run the Ordinary Least Squares (OLS) regression tool, you are presented with a set of diagnostics that can help you figure out whether you have a properly specified model a properly specified model is one you can trust. Childhood obesity, crime, test scores, and almost all the things that you might want to model using regression analysis are complicated issues that rarely have simple answers.
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What they don't tell you about regression analysis is that it isn't always easy to find a set of explanatory variables that will allow you to answer your question or to explain the complex phenomenon you are trying to model. These are the things they do tell you about regression analysis. Likewise, knowing the variables that help explain high crime rates can allow you to make predictions about future crime so that prevention resources can be allocated more effectively. If, for example, you discover that childhood obesity is lower in schools that serve fresh fruits and vegetables at lunch, you can use that information to guide policy and make decisions about school lunch programs. Typically, regression analysis helps you answer these why questions so that you can do something about them. It helps you answer why questions like "Why are there places in the United States with test scores that are consistently above the national average?" or "Why are there areas of the city with such high rates of residential burglary?" You might use regression analysis to explain childhood obesity, for example, using a set of related variables such as income, education, and accessibility to healthy food. Regression analysis is used to understand, model, predict, and/or explain complex phenomena.