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

Outliers


After properly transforming all the quantitative and qualitative variables and fixing any missing data, what's left is just to detect any possible outlier and to deal with it by removing it from the data or by imputing it as if it were a missing case.

An outlier, sometimes also referred to as an anomaly, is an observation that is very different from all the others you have observed so far. It can be viewed as an unusual case that stands out, and it could pop up due to a mistake (an erroneous value completely out of scale) or simply a value that occurred (rarely, but it occurred). Though understanding the origin of an outlier could help to fix the problem in the most appropriate way (an error could be legitimately removed; a rare case could be kept or capped or even imputed as a missing case), what is of utmost concern is the effect of one or more outliers on your regression analysis results. Any anomalous data in a regression analysis means a distortion of the regression's coefficients...