Manually calculating predictions with interactions
In order to understand how .predict() works, it's time to calculate the predictions manually again. For this model, there are three separate lines to calculate for, and in each one, the prediction is an intercept plus a slope times the numeric explanatory value. The tricky part is getting the right intercept and the right slope for each case.
mdl_price_vs_both_inter and explanatory_data are available.
This exercise is part of the course
Intermediate Regression with statsmodels in Python
Hands-on interactive exercise
Have a go at this exercise by completing this sample code.
# Get the coefficients from mdl_price_vs_both_inter
coeffs = ____
# Assign each of the elements of coeffs
____