When Is Stepwise Regression Appropriate? Stepwise regression is an appropriate analysis when you have many variables and you're interested in identifying a useful subset of the predictors. In Minitab, the standard stepwise regression procedure both adds and removes predictors one at a time.

In what specific application is stepwise regression used today?

Stepwise regression procedures are used in data mining, but are controversial. Several points of criticism have been made. The tests themselves are biased, since they are based on the same data.

Should I use forward or backward stepwise regression?

The backward method is generally the preferred method, because the forward method produces so-called suppressor effects. These suppressor effects occur when predictors are only significant when another predictor is held constant.