7.11 Prediction: Linear model (Prediction)
yLeia=5.56+−0.66×x1Leia+0.12×x2Leia+εLeia
5=5.56+−0.66×0+0.12×1+−0.69=5.69+−0.69
- Important note on “prediction”
- We can predict outcome values of units that are part of the sample on which the model is based
- Objective of machine learning (ML) is to predict outcome values of units that were NOT part of the sample on which the model is based (trained)