How can regression analysis be applied to predict future trends in a dataset, and what are the potential pitfalls in dealing with model overfitting using multiple predictors?

Regression analysis predicts future trends by modeling relationships between variables. It uses historical data to fit a model, which can then forecast future values. However, using multiple predictors can lead to overfitting, where the model captures noise rather than the true underlying trend. This reduces predictive accuracy. Techniques like cross-validation, regularization, and simplifying the model can mitigate overfitting.

Start Using PopAi Today