What are the uses of a regression model?
Solution: If we are able to establish a linear relationship between variables, we can use the regression model to predict the outcome of 
as a function of
, using the formula
where 
corresponds to the predicted , 
and
corresponds to the estimations for the parameters 
and
. There are certain restrictions to the validity of this kind of prediction, like the use of the appropriate range, and the actual existence of a reasonable prior linear relationship.
