Steps of Modelling

The data are usually recorded in rows and columns. A column represents a variable,whereas a row represents an observation, which is a set of p 1 values for a single subject i.e. one value for the response variable and one value for each of the p predictors. Each of the variables can be classified as either quantitative or qualitative. A technique used in cases where the response variable is binary is called logistic regression. In regression analysis, the predictor variables can be either quantitative and or qualitative. For the purpose of computations, however, the qualitative variables, if any, have to be coded into a set of indicator or dummy variables.