In the real world, whenever, we publish a regression model for use in prediction we take special care to make sure any reader or potential user of the model knows the lowest and highest values from each data set involved in development of the regression model. What are these values important? Describe a specific problem that could occur if a user of a regression model wants to use the model to predict something, and he inputs a value into the regression model for an independent variable that is outside the lowest and highest values from that variable's original data test.
The lowest and highest values from each data set involved in development of the regression model are very important because they define the valid range of the model. Values used outside this range may render the model invalid.
The following is an example.
Your company was very impressed with your results from the recent study. They have asked that you investigate another location for them and present this new promising location at the upcoming sales meeting. It is your job to check out the various areas and the friendliness for business. One of the factors of ...
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