Statsmodels

[Download this notebook](04 - Linear Regression.ipynb) Today we are going to look at some basics of statistics. Statistics can help us to describe and explain data in a simple way. In this lesson you’ll learn: how to calculate the mean, variance, and standard deviation in Python. the difference between a regression and a classification. how a linear regression functions and the meaning of its coefficients. about the Mean Squared Error and the loss function.

Download this notebook This notebook uses a very simply dataset and model to show that problems can arise if the different features in your dataset are collinear or correlated with each other. Although the setup here is deliberately simple, this can obviously also occur in much more complex high-dimensional data and models and lead to very wrong interpretations of the model coefficients. import pandas as pd import numpy as np import matplotlib.