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.

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