Coefficient Magnitudes (in Linear Models)

Description

Coefficient Magnitudes assess feature influence in linear models by examining the absolute values of their coefficients. Features with larger absolute coefficients are considered to have a stronger impact on the prediction, while the sign of the coefficient indicates the direction of that influence (positive or negative). This technique provides a straightforward and transparent way to understand the direct linear relationship between each input feature and the model's output.

Example Use Cases

Explainability

Interpreting which features influence housing price predictions in linear regression, such as identifying that 'number of bedrooms' has a larger positive impact than 'distance to city centre' based on coefficient magnitudes.

Transparency

Explaining the factors contributing to customer lifetime value (CLV) in a linear model, showing how 'average monthly spend' has a strong positive coefficient, making the model transparent for business stakeholders.

Limitations

  • Only valid for linear relationships; it cannot capture complex non-linear patterns or interactions between features.
  • Highly sensitive to feature scaling; features with larger numerical ranges can appear more important even if their true impact is smaller.
  • Can be misleading in the presence of multicollinearity, where correlated features may split importance or have unstable coefficients.
  • Does not imply causation; a strong correlation (large coefficient) does not necessarily mean a causal relationship.

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