Definition: discovering correlations between the outcome and the set of regressors (features)
: real random variable
: vector or random variables
For wages, suppose
: hourly wage
: regressors (experience, gender, education)
: target regressor
: controls of components
Prediction: how can we use to predict well?
Inference: how does the predicted value of change if we change a component of holding the rest of the components of fixed?