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  3. Introduction to Regression with statsmodels in Python
  • 1

    Simple Linear Regression Modeling

    Free

    You’ll learn the basics of this popular statistical model, what regression is, and how linear and logistic regressions differ. You’ll then learn how to fit simple linear regression models with numeric and categorical explanatory variables, and how to describe the relationship between the response and explanatory variables using model coefficients.

  • 2

    Predictions and model objects

    In this chapter, you’ll discover how to use linear regression models to make predictions on Taiwanese house prices and Facebook advert clicks. You’ll also grow your regression skills as you get hands-on with model objects, understand the concept of "regression to the mean", and learn how to transform variables in a dataset.

  • 3

    Assessing model fit

    In this chapter, you’ll learn how to ask questions of your model to assess fit. You’ll learn how to quantify how well a linear regression model fits, diagnose model problems using visualizations, and understand each observation's leverage and influence to create the model.

  • 4

    Simple Logistic Regression Modeling

    Learn to fit logistic regression models. Using real-world data, you’ll predict the likelihood of a customer closing their bank account as probabilities of success and odds ratios, and quantify model performance using confusion matrices.

Initializing

Exercise

Most likely outcome

When explaining your results to a non-technical audience, you may wish to side-step talking about probabilities and simply explain the most likely outcome. That is, rather than saying there is a 60% chance of a customer churning, you say that the most likely outcome is that the customer will churn. The trade-off here is easier interpretation at the cost of nuance.

mdl_churn_vs_relationship, explanatory_data, and prediction_data are available from the previous exercise.

Instructions 1/2

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  • Update prediction_data to add a column of the most likely churn outcome, most_likely_outcome.
  • Print the first five lines of prediction_data.