10. Prediction 2

We begin this chapter with classification problems. That is, situations in which we want to place observations into categories. If we are successful at this, we can predict what category future or incoming observations should be placed in, given what we know about those observations (their \(X\) variables). To keep things simple, our categories will be binary in nature (i.e. there are two categories), but classification is much more general than that. We will begin with some real examples of such problems.

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10.1. Note

This chapter is largely adapted from materials in the 2017 commit of Inferential Thinking. Please refer to the first page of our text for copyright details.