Book Image

Regression Analysis with Python

By : Luca Massaron, Alberto Boschetti
4 (1)
Book Image

Regression Analysis with Python

4 (1)
By: Luca Massaron, Alberto Boschetti

Overview of this book

Regression is the process of learning relationships between inputs and continuous outputs from example data, which enables predictions for novel inputs. There are many kinds of regression algorithms, and the aim of this book is to explain which is the right one to use for each set of problems and how to prepare real-world data for it. With this book you will learn to define a simple regression problem and evaluate its performance. The book will help you understand how to properly parse a dataset, clean it, and create an output matrix optimally built for regression. You will begin with a simple regression algorithm to solve some data science problems and then progress to more complex algorithms. The book will enable you to use regression models to predict outcomes and take critical business decisions. Through the book, you will gain knowledge to use Python for building fast better linear models and to apply the results in Python or in any computer language you prefer.
Table of Contents (16 chapters)
Regression Analysis with Python
Credits
About the Authors
About the Reviewers
www.PacktPub.com
Preface
Index

A ranking problem


Given some descriptors of a car and its price, the goal of this problem is to predict the degree to which the car is riskier than its price indicates. Actuaries in the insurance business call this process symboling, and the outcome is a rank: a value of +3 indicates the car is risky; -3 indicates that it's pretty safe (although the lowest value in the dataset is -2).

The description of the car includes its specifications in terms of various characteristics (brand, fuel type, body style, length, and so on). Moreover, you get its price and normalized loss in use as compared to other cars (this represents the average loss per car per year, normalized for all cars within a certain car segment).

There are 205 cars in the dataset, and the number of features is 25; some of them are categorical, and others are numerical. In addition, the dataset expressively states that there are some missing values, encoded using the string "?".

Although it is not stated directly on the presentation...