Describe a situation or problem from your job, everyday life, current events, etc., for which a linear regression model would be appropriate. List some (up to 5) predictors that you might use.

Finance

Explanation:

The capital asset pricing model uses liner regression as well as the concept of beta for analyzing and quantifying the systematic risk of an investment this comes directly from the beta coefficient of the linear regression model that relates the return on investment to the return on all risk.

other predictors are:

1. sales products: linear regression can be used to predict the sale of products in the future based on past buying behavior

2. predict economy growth: economist use linear regression to predict the economic growth of country or state

3. score prediction: sports analyst use linear regression to predict the number of runs or goals a player would score in the coming matches based on previous performances

4. salary estimation: an organization can use linear regression to figure out how much they would pay to a new employee based on the years of experience

5. oil price: petroleum prices can be predicted using linear regression