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Linear Regression
Supervised machine learning algorithms: It is a type of machine learning, where the
algorithm learns from labeled data.
Labeled data means the dataset whose respective target value is already known.
Supervised learning has two types:
Classification: It predicts the class of the dataset based on the independent
input variable. Class is the categorical or discrete values. like the image of an
animal is a cat or dog?
Regression: It predicts the continuous output variables based on the
independent input variable. like the prediction of house prices based on different
parameters like house age, distance from the main road, location, area, etc.
The above diagram is an example of Simple Linear Regression, where change in the value
of feature 'Y' is proportional to value of 'X'.
Y : Dependent or Target Variable.
X : Independent Variable.
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Regression Line: It is best-fit line of the model, by which we can predict value of 'Y' for
new values of 'X'.
Assumption of Linear Regression:
Linear regression makes several key assumptions about the data and the relationships it
models. Violations of these assumptions can affect the validity and reliability of the
regression results. Here are the main assumptions of linear regression:
Linearity: The relationship between the independent variable(s) and the dependent
variable is linear. This means that the change in the dependent variable for a unit
change in the independent variable is constant.
Independence of Errors: The errors (residuals) of the model are assumed to be
independent of each other. In other words, the error of one observation should not be
influenced by the errors of other observations.
Homoscedasticity: Homoscedasticity refers to the assumption that the variance of
the residuals is constant across all levels of the independent variables. This means
that the spread of residuals should be roughly the same throughout the range of the
predictor variables.
Normality of Errors: The errors (residuals) should be normally distributed. This
assumption is important for hypothesis testing and constructing confidence intervals.
No or Little Multicollinearity: Multicollinearity occurs when two or more independent
variables in the model are highly correlated. This can make it difficult to interpret the
individual effects of each variable on the dependent variable.
No Endogeneity: Endogeneity refers to the situation where an independent variable is
correlated with the error term. This can arise due to omitted variable bias or
simultaneous causation and can lead to biased and inconsistent coefficient
estimates.
No Autocorrelation: Autocorrelation occurs when the residuals of the model are
correlated with each other. This assumption is important when dealing with time
series data, where observations are dependent on previous observations.
Constant Variance of Residuals (Homoscedasticity): Also known as
homoscedasticity, this assumption states that the variance of the residuals is
consistent across all levels of the independent variables. This is crucial for accurate
hypothesis testing and confidence interval estimation.
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No Perfect Collinearity: Perfect collinearity exists when one independent variable can
be perfectly predicted by a linear combination of other independent variables. This
situation leads to a rank-deficient matrix, making it impossible to estimate unique
regression coefficients.
Salary Prediction using Simple Linear Regression
# Step1: Import important libraries
import numpy as np
import pandas as pd
import matplotlib.pyplot as plt
# Step2: Import the Dataset
data = pd.read_csv('/kaggle/input/salary-dataset-simple-linear-regression/Salary_datas
print(data.head())
Unnamed: 0 YearsExperience Salary
0 0 1.2 39344.0
1 1 1.4 46206.0
2 2 1.6 37732.0
3 3 2.1 43526.0
4 4 2.3 39892.0
data.shape
(30, 3)
# Get information of the Dataset
data.info()
<class 'pandas.core.frame.DataFrame'>
RangeIndex: 30 entries, 0 to 29
Data columns (total 3 columns):
# Column Non-Null Count Dtype
--- ------ -------------- -----
0 Unnamed: 0 30 non-null int64
1 YearsExperience 30 non-null float64
2 Salary 30 non-null float64
dtypes: float64(2), int64(1)
memory usage: 848.0 bytes
Exploratory Data Analysis (EDA):
# 1. NULL Value Treatment
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data.isna().sum()
# So, no null values present
Unnamed: 0 0
YearsExperience 0
Salary 0
dtype: int64
# 2. Drop duplicate values
data.duplicated()
# No duplicates present
0 False
1 False
2 False
3 False
4 False
5 False
6 False
7 False
8 False
9 False
10 False
11 False
12 False
13 False
14 False
15 False
16 False
17 False
18 False
19 False
20 False
21 False
22 False
23 False
24 False
25 False
26 False
27 False
28 False
29 False
dtype: bool
# 3. Calculate summary statistics
data.describe()
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Unnamed: 0 YearsExperience Salary
count 30.000000 30.000000 30.000000
mean 14.500000 5.413333 76004.000000
std 8.803408 2.837888 27414.429785
min 0.000000 1.200000 37732.000000
25% 7.250000 3.300000 56721.750000
50% 14.500000 4.800000 65238.000000
# 4. No categorical variables present
75% 21.750000 7.800000 100545.750000
max 29.000000 10.600000 122392.000000
Split Dataset:
# Extract dependent(denoted by Y - target variable) and
# independent(denoted by X) features from Dataset
X = data['YearsExperience']
Y = data['Salary']
Splitting Training and Testing Dataset:
from sklearn.model_selection import train_test_split
x_train, x_test, y_train, y_test = train_test_split(X, Y, test_size=0.2, random_state=
# Convert Series to DataFrame
x_train = pd.DataFrame(x_train)
x_test = pd.DataFrame(x_test)
y_train = pd.DataFrame(y_train)
y_test = pd.DataFrame(y_test)
Model Fitting:
from sklearn.linear_model import LinearRegression
regressor = LinearRegression()
regressor.fit(x_train, y_train)
▾ LinearRegression
LinearRegression()
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# Predict output for the x_test dataset
y_pred = regressor.predict(x_test)
y_pred
array([[39297.22202233],
[75603.43359409],
[37386.36878171],
[60316.60766914],
[63182.88753007],
[52673.19470666]])
Checking Accuracy Score:
from sklearn.metrics import mean_squared_error, r2_score, mean_absolute_error
# Mean Squared Error
mse = mean_squared_error(y_test, y_pred)
mse
36064238.493955195
# R2 - Score
r2 = r2_score(y_test, y_pred)
r2
# r2_score = 0.81, which is closer to 1.
# So, the line of regression is accurate.
0.8143022783109011
# Mean Absolute Error
mae = mean_absolute_error(y_test, y_pred)
mae
5392.453356511894
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