Linear forecasting models can be used in both types of forecasting methods. In the case of causal methods, the causal model may consist of a linear regression with several explanatory variables.

Before building my model, I want to step back to offer an easy-to-understand definition of linear regression and why it’s vital to analyzing data. What is linear regression?

Simple linear regression is commonly used in forecasting and financial analysis—for a company to tell how a change in the GDP could affect sales, for example. Microsoft Excel and other software ...

Nonlinear regression is a form of regression analysis in which data is fit to a model and then expressed as a mathematical function. Simple linear regression relates two variables (X and Y) with a ...