{

"cells": [
{
"cell_type": "markdown",
"metadata": {},
"source": [
"<h2 style=\"color:green\" align=\"center\">Machine Learning With Python:
Linear Regression With One Variable</h2>"
]
},
{
"cell_type": "markdown",
"metadata": {},
"source": [
"<h3 style=\"color:purple\">Sample problem of predicting home price in monroe,
new jersey (USA)</h3>"
]
},
{
"cell_type": "markdown",
"metadata": {},
"source": [
"Below table represents current home prices in monroe township based on square
feet area, new jersey"
]
},
{
"cell_type": "markdown",
"metadata": {},
"source": [
"<img src=\"homepricetable.JPG\" style=\"width:370px;height:250px\">"
]
},
{
"cell_type": "markdown",
"metadata": {},
"source": [
"**Problem Statement**: Given above data build a machine learning model that
can predict home prices based on square feet area\n"
]
},
{
"cell_type": "markdown",
"metadata": {},
"source": [
"You can represent values in above table as a scatter plot (values are shown in
red markers). After that one can draw a straight line that best fits values on
chart. "
]
},
{
"cell_type": "markdown",
"metadata": {},
"source": [
"<img src=\"scatterplot.JPG\" style=\"width:600px;height:370px\">"
]
},
{
"cell_type": "markdown",
 "metadata": {},
"source": [
"You can draw multiple lines like this but we choose the one where total sum of
error is minimum"
]
},
{
"cell_type": "markdown",
"metadata": {},
"source": [
"<img src=\"equation.PNG\" style=\"width:600px;height:370px\" >"
]
},
{
"cell_type": "markdown",
"metadata": {},
"source": [
"You might remember about linear equation from your high school days math
class. Home prices can be presented as following equation,\n",
"\n",
"home price = m * (area) + b\n",
"\n",
"Generic form of same equation is,"
]
},
{
"cell_type": "markdown",
"metadata": {},
"source": [
"<img src=\"linear_equation.png\" >"
]
},
{
"cell_type": "code",
"execution_count": 1,
"metadata": {},
"outputs": [],
"source": [
"import pandas as pd\n",
"import numpy as np\n",
"from sklearn import linear_model\n",
"import matplotlib.pyplot as plt"
]
},
{
"cell_type": "code",
"execution_count": 2,
"metadata": {},
"outputs": [
{
"data": {
"text/html": [
"<div>\n",
"<style scoped>\n",
" .dataframe tbody tr th:only-of-type {\n",
" vertical-align: middle;\n",
" }\n",
"\n",
" .dataframe tbody tr th {\n",
 " vertical-align: top;\n",
" }\n",
"\n",
" .dataframe thead th {\n",
" text-align: right;\n",
" }\n",
"</style>\n",
"<table border=\"1\" class=\"dataframe\">\n",
" <thead>\n",
" <tr style=\"text-align: right;\">\n",
" <th></th>\n",
" <th>area</th>\n",
" <th>price</th>\n",
" </tr>\n",
" </thead>\n",
" <tbody>\n",
" <tr>\n",
" <th>0</th>\n",
" <td>2600</td>\n",
" <td>550000</td>\n",
" </tr>\n",
" <tr>\n",
" <th>1</th>\n",
" <td>3000</td>\n",
" <td>565000</td>\n",
" </tr>\n",
" <tr>\n",
" <th>2</th>\n",
" <td>3200</td>\n",
" <td>610000</td>\n",
" </tr>\n",
" <tr>\n",
" <th>3</th>\n",
" <td>3600</td>\n",
" <td>680000</td>\n",
" </tr>\n",
" <tr>\n",
" <th>4</th>\n",
" <td>4000</td>\n",
" <td>725000</td>\n",
" </tr>\n",
" </tbody>\n",
"</table>\n",
"</div>"
],
"text/plain": [
" area price\n",
"0 2600 550000\n",
"1 3000 565000\n",
"2 3200 610000\n",
"3 3600 680000\n",
"4 4000 725000"
]
},
"execution_count": 2,
"metadata": {},
"output_type": "execute_result"
}
],
 "source": [
"df = pd.read_csv('homeprices.csv')\n",
"df"
]
},
{
"cell_type": "code",
"execution_count": 3,
"metadata": {},
"outputs": [
{
"data": {
"text/plain": [
"<matplotlib.collections.PathCollection at 0x25c8eb78d68>"
]
},
"execution_count": 3,
"metadata": {},
"output_type": "execute_result"
},
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/4iQEby6bxCxAAAAAElFTkSuQmCC\n",
"text/plain": [
"<Figure size 432x288 with 1 Axes>"
]
},
"metadata": {
"needs_background": "light"
},
"output_type": "display_data"
}
],
"source": [
"%matplotlib inline\n",
"plt.xlabel('area')\n",
"plt.ylabel('price')\n",
"plt.scatter(df.area,df.price,color='red',marker='+')"
]
},
{
"cell_type": "code",
"execution_count": 5,
"metadata": {},
"outputs": [
{
"data": {
"text/html": [
"<div>\n",
"<style scoped>\n",
" .dataframe tbody tr th:only-of-type {\n",
" vertical-align: middle;\n",
" }\n",
"\n",
" .dataframe tbody tr th {\n",
" vertical-align: top;\n",
" }\n",
"\n",
" .dataframe thead th {\n",
" text-align: right;\n",
" }\n",
"</style>\n",
"<table border=\"1\" class=\"dataframe\">\n",
" <thead>\n",
" <tr style=\"text-align: right;\">\n",
" <th></th>\n",
" <th>area</th>\n",
" </tr>\n",
" </thead>\n",
" <tbody>\n",
" <tr>\n",
" <th>0</th>\n",
" <td>2600</td>\n",
" </tr>\n",
" <tr>\n",
" <th>1</th>\n",
" <td>3000</td>\n",
" </tr>\n",
 " <tr>\n",
" <th>2</th>\n",
" <td>3200</td>\n",
" </tr>\n",
" <tr>\n",
" <th>3</th>\n",
" <td>3600</td>\n",
" </tr>\n",
" <tr>\n",
" <th>4</th>\n",
" <td>4000</td>\n",
" </tr>\n",
" </tbody>\n",
"</table>\n",
"</div>"
],
"text/plain": [
" area\n",
"0 2600\n",
"1 3000\n",
"2 3200\n",
"3 3600\n",
"4 4000"
]
},
"execution_count": 5,
"metadata": {},
"output_type": "execute_result"
}
],
"source": [
"new_df = df.drop('price',axis='columns')\n",
"new_df"
]
},
{
"cell_type": "code",
"execution_count": 8,
"metadata": {},
"outputs": [
{
"data": {
"text/plain": [
"0 550000\n",
"1 565000\n",
"2 610000\n",
"3 680000\n",
"4 725000\n",
"Name: price, dtype: int64"
]
},
"execution_count": 8,
"metadata": {},
"output_type": "execute_result"
}
],
"source": [
"price = df.price\n",
"price"
 ]
},
{
"cell_type": "code",
"execution_count": 9,
"metadata": {},
"outputs": [
{
"data": {
"text/plain": [
"LinearRegression(copy_X=True, fit_intercept=True, n_jobs=None,\n",
" normalize=False)"
]
},
"execution_count": 9,
"metadata": {},
"output_type": "execute_result"
}
],
"source": [
"# Create linear regression object\n",
"reg = linear_model.LinearRegression()\n",
"reg.fit(new_df,price)"
]
},
{
"cell_type": "markdown",
"metadata": {},
"source": [
"**(1) Predict price of a home with area = 3300 sqr ft**"
]
},
{
"cell_type": "code",
"execution_count": 10,
"metadata": {
"scrolled": true
},
"outputs": [
{
"data": {
"text/plain": [
"array([628715.75342466])"
]
},
"execution_count": 10,
"metadata": {},
"output_type": "execute_result"
}
],
"source": [
"reg.predict([[3300]])"
]
},
{
"cell_type": "code",
"execution_count": 11,
"metadata": {},
"outputs": [
 {
"data": {
"text/plain": [
"array([135.78767123])"
]
},
"execution_count": 11,
"metadata": {},
"output_type": "execute_result"
}
],
"source": [
"reg.coef_"
]
},
{
"cell_type": "code",
"execution_count": 12,
"metadata": {
"scrolled": true
},
"outputs": [
{
"data": {
"text/plain": [
"180616.43835616432"
]
},
"execution_count": 12,
"metadata": {},
"output_type": "execute_result"
}
],
"source": [
"reg.intercept_"
]
},
{
"cell_type": "markdown",
"metadata": {},
"source": [
"**Y = m * X + b (m is coefficient and b is intercept)**"
]
},
{
"cell_type": "code",
"execution_count": 13,
"metadata": {
"scrolled": true
},
"outputs": [
{
"data": {
"text/plain": [
"628715.7534151643"
]
},
"execution_count": 13,
"metadata": {},
 "output_type": "execute_result"
}
],
"source": [
"3300*135.78767123 + 180616.43835616432"
]
},
{
"cell_type": "markdown",
"metadata": {},
"source": [
"**(1) Predict price of a home with area = 5000 sqr ft**"
]
},
{
"cell_type": "code",
"execution_count": 14,
"metadata": {},
"outputs": [
{
"data": {
"text/plain": [
"array([859554.79452055])"
]
},
"execution_count": 14,
"metadata": {},
"output_type": "execute_result"
}
],
"source": [
"reg.predict([[5000]])"
]
},
{
"cell_type": "markdown",
"metadata": {},
"source": [
"<h3 style=\"color:purple\">Generate CSV file with list of home price
predictions</h3>"
]
},
{
"cell_type": "code",
"execution_count": 15,
"metadata": {},
"outputs": [
{
"data": {
"text/html": [
"<div>\n",
"<style scoped>\n",
" .dataframe tbody tr th:only-of-type {\n",
" vertical-align: middle;\n",
" }\n",
"\n",
" .dataframe tbody tr th {\n",
" vertical-align: top;\n",
" }\n",
 "\n",
" .dataframe thead th {\n",
" text-align: right;\n",
" }\n",
"</style>\n",
"<table border=\"1\" class=\"dataframe\">\n",
" <thead>\n",
" <tr style=\"text-align: right;\">\n",
" <th></th>\n",
" <th>area</th>\n",
" </tr>\n",
" </thead>\n",
" <tbody>\n",
" <tr>\n",
" <th>0</th>\n",
" <td>1000</td>\n",
" </tr>\n",
" <tr>\n",
" <th>1</th>\n",
" <td>1500</td>\n",
" </tr>\n",
" <tr>\n",
" <th>2</th>\n",
" <td>2300</td>\n",
" </tr>\n",
" </tbody>\n",
"</table>\n",
"</div>"
],
"text/plain": [
" area\n",
"0 1000\n",
"1 1500\n",
"2 2300"
]
},
"execution_count": 15,
"metadata": {},
"output_type": "execute_result"
}
],
"source": [
"area_df = pd.read_csv(\"areas.csv\")\n",
"area_df.head(3)"
]
},
{
"cell_type": "code",
"execution_count": 16,
"metadata": {},
"outputs": [
{
"data": {
"text/plain": [
"array([ 316404.10958904, 384297.94520548, 492928.08219178,\n",
" 661304.79452055, 740061.64383562, 799808.21917808,\n",
" 926090.75342466, 650441.78082192, 825607.87671233,\n",
" 492928.08219178, 1402705.47945205, 1348390.4109589 ,\n",
" 1144708.90410959])"
 ]
},
"execution_count": 16,
"metadata": {},
"output_type": "execute_result"
}
],
"source": [
"p = reg.predict(area_df)\n",
"p"
]
},
{
"cell_type": "code",
"execution_count": 17,
"metadata": {},
"outputs": [
{
"data": {
"text/html": [
"<div>\n",
"<style scoped>\n",
" .dataframe tbody tr th:only-of-type {\n",
" vertical-align: middle;\n",
" }\n",
"\n",
" .dataframe tbody tr th {\n",
" vertical-align: top;\n",
" }\n",
"\n",
" .dataframe thead th {\n",
" text-align: right;\n",
" }\n",
"</style>\n",
"<table border=\"1\" class=\"dataframe\">\n",
" <thead>\n",
" <tr style=\"text-align: right;\">\n",
" <th></th>\n",
" <th>area</th>\n",
" <th>prices</th>\n",
" </tr>\n",
" </thead>\n",
" <tbody>\n",
" <tr>\n",
" <th>0</th>\n",
" <td>1000</td>\n",
" <td>3.164041e+05</td>\n",
" </tr>\n",
" <tr>\n",
" <th>1</th>\n",
" <td>1500</td>\n",
" <td>3.842979e+05</td>\n",
" </tr>\n",
" <tr>\n",
" <th>2</th>\n",
" <td>2300</td>\n",
" <td>4.929281e+05</td>\n",
" </tr>\n",
" <tr>\n",
 " <th>3</th>\n",
" <td>3540</td>\n",
" <td>6.613048e+05</td>\n",
" </tr>\n",
" <tr>\n",
" <th>4</th>\n",
" <td>4120</td>\n",
" <td>7.400616e+05</td>\n",
" </tr>\n",
" <tr>\n",
" <th>5</th>\n",
" <td>4560</td>\n",
" <td>7.998082e+05</td>\n",
" </tr>\n",
" <tr>\n",
" <th>6</th>\n",
" <td>5490</td>\n",
" <td>9.260908e+05</td>\n",
" </tr>\n",
" <tr>\n",
" <th>7</th>\n",
" <td>3460</td>\n",
" <td>6.504418e+05</td>\n",
" </tr>\n",
" <tr>\n",
" <th>8</th>\n",
" <td>4750</td>\n",
" <td>8.256079e+05</td>\n",
" </tr>\n",
" <tr>\n",
" <th>9</th>\n",
" <td>2300</td>\n",
" <td>4.929281e+05</td>\n",
" </tr>\n",
" <tr>\n",
" <th>10</th>\n",
" <td>9000</td>\n",
" <td>1.402705e+06</td>\n",
" </tr>\n",
" <tr>\n",
" <th>11</th>\n",
" <td>8600</td>\n",
" <td>1.348390e+06</td>\n",
" </tr>\n",
" <tr>\n",
" <th>12</th>\n",
" <td>7100</td>\n",
" <td>1.144709e+06</td>\n",
" </tr>\n",
" </tbody>\n",
"</table>\n",
"</div>"
],
"text/plain": [
" area prices\n",
"0 1000 3.164041e+05\n",
"1 1500 3.842979e+05\n",
"2 2300 4.929281e+05\n",
"3 3540 6.613048e+05\n",
 "4 4120 7.400616e+05\n",
"5 4560 7.998082e+05\n",
"6 5490 9.260908e+05\n",
"7 3460 6.504418e+05\n",
"8 4750 8.256079e+05\n",
"9 2300 4.929281e+05\n",
"10 9000 1.402705e+06\n",
"11 8600 1.348390e+06\n",
"12 7100 1.144709e+06"
]
},
"execution_count": 17,
"metadata": {},
"output_type": "execute_result"
}
],
"source": [
"area_df['prices']=p\n",
"area_df"
]
},
{
"cell_type": "code",
"execution_count": 18,
"metadata": {},
"outputs": [],
"source": [
"area_df.to_csv(\"prediction.csv\")"
]
},
{
"cell_type": "markdown",
"metadata": {},
"source": [
"<h3>Exercise</h3>"
]
},
{
"cell_type": "markdown",
"metadata": {},
"source": [
"<p >Predict canada's per capita income in year 2020. There is an exercise
folder here on github at same level as this notebook, download that and you will
find canada_per_capita_income.csv file. Using this build a regression model and
predict the per capita income fo canadian citizens in year 2020</p>"
]
},
{
"cell_type": "markdown",
"metadata": {},
"source": [
"<h3>Answer</h3>"
]
},
{
"cell_type": "markdown",
"metadata": {},
"source": [
"41288.69409442"
 ]
}
],
"metadata": {
"kernelspec": {
"display_name": "Python 3",
"language": "python",
"name": "python3"
},
"language_info": {
"codemirror_mode": {
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"version": 3
},
"file_extension": ".py",
"mimetype": "text/x-python",
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