How Marketing Mix Modeling (MMM) helped me learn Linear Regression from first Principles.
Some of you have appreciated my posts on Linear Regression and other statistics topics.
Some of you also often ask me resources to learn Linear Regression. I always provide a list of books or articles that I have personally read.
But when I look back, there is one thing that helped me learn the concept of Linear Regression from first principles. And it wasn’t just the books or articles.
It was practice.
My understanding of Linear Regression really deepened because of Marketing Mix Modeling.
8 years ago, Ridhima Kumar taught me the nuances of MMM. I will forever be thankful to her for that because it helped me not only see Linear Regression from a totally different perspective but also experience the various nuances in it.
MMM is application of Linear Regression and its variants to real life problems.
Because we had to apply it to real life business problems, there was skin in the game to get the application right. Else we would not get paid. ๐
Overall, building MMM models helped me experience the below concepts which were just theory before.
1) Multicollinearity
2) Endogeneity
3) Autocorrelation
4) Omitted Variable Bias
5) Suppression Effect
6) Regression Dilution
7) N<P problem
8) Negative R squared Value
9) Inflated Zero problem
10) Interaction effects and confounding.
Link to mine and Ridhima’s posts on Linear Regressions are under resources.
Resources:
Why linear regression is not about prediction –https://www.linkedin.com/posts/venkat-raman-analytics_statistics-datascience-linearregression-activity-7081862582940168193-FfQu?utm_source=share&utm_medium=member_desktop
Conditional distribution – https://www.linkedin.com/posts/venkat-raman-analytics_linearregression-statistics-datascience-activity-7076796588462915584-Z29V?utm_source=share&utm_medium=member_desktop
T value and p value in regression: https://www.linkedin.com/posts/venkat-raman-analytics_statistics-datascience-linearregression-activity-7066682786274824193-llNx?utm_source=share&utm_medium=member_desktop
How useful is F test in Linear Regression? https://www.linkedin.com/posts/venkat-raman-analytics_statistics-datascience-datascientists-activity-7053981090830594048-COe0?utm_source=share&utm_medium=member_desktop
Most Important Assumption Checks of Linear Regression – https://bit.ly/3eu47ky
Linear Regression: the most written topic in Data Science – http://bit.ly/3WLJV1y
