2_linear_regression_multivariate.ipynb

{
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   "metadata": {},
   "source": [
    "<h2 style=\"color:green\" align=\"center\"> Machine Learning With Python: Linear Regression Multiple Variables</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 is the table containing home prices in monroe twp, NJ. Here price depends on **area (square feet), bed rooms and age of the home (in years)**. Given these prices we have to predict prices of new homes based on area, bed rooms and age."
   ]
  },
  {
   "cell_type": "markdown",
   "metadata": {},
   "source": [
    "<img src=\"homeprices.jpg\" style='height:200px;width:350px'>"
   ]
  },
  {
   "cell_type": "markdown",
   "metadata": {},
   "source": [
    "Given these home prices find out price of a home that has,\n",
    "\n",
    "**3000 sqr ft area, 3 bedrooms, 40 year old**\n",
    "\n",
    "**2500 sqr ft area, 4 bedrooms,  5 year old**"
   ]
  },
  {
   "cell_type": "markdown",
   "metadata": {},
   "source": [
    "We will use regression with multiple variables here. Price can be calculated using following equation,"
   ]
  },
  {
   "cell_type": "markdown",
   "metadata": {},
   "source": [
    "<img src=\"equation.jpg\" >"
   ]
  },
  {
   "cell_type": "markdown",
   "metadata": {},
   "source": [
    "Here area, bedrooms, age are called independant variables or **features** whereas price is a dependant variable"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 1,
   "metadata": {},
   "outputs": [],
   "source": [
    "import pandas as pd\n",
    "import numpy as np\n",
    "from sklearn import linear_model"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 2,
   "metadata": {
    "scrolled": true
   },
   "outputs": [
    {
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       "<table border=\"1\" class=\"dataframe\">\n",
       "  <thead>\n",
       "    <tr style=\"text-align: right;\">\n",
       "      <th></th>\n",
       "      <th>area</th>\n",
       "      <th>bedrooms</th>\n",
       "      <th>age</th>\n",
       "      <th>price</th>\n",
       "    </tr>\n",
       "  </thead>\n",
       "  <tbody>\n",
       "    <tr>\n",
       "      <th>0</th>\n",
       "      <td>2600</td>\n",
       "      <td>3.0</td>\n",
       "      <td>20</td>\n",
       "      <td>550000</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>1</th>\n",
       "      <td>3000</td>\n",
       "      <td>4.0</td>\n",
       "      <td>15</td>\n",
       "      <td>565000</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2</th>\n",
       "      <td>3200</td>\n",
       "      <td>NaN</td>\n",
       "      <td>18</td>\n",
       "      <td>610000</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>3</th>\n",
       "      <td>3600</td>\n",
       "      <td>3.0</td>\n",
       "      <td>30</td>\n",
       "      <td>595000</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>4</th>\n",
       "      <td>4000</td>\n",
       "      <td>5.0</td>\n",
       "      <td>8</td>\n",
       "      <td>760000</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>5</th>\n",
       "      <td>4100</td>\n",
       "      <td>6.0</td>\n",
       "      <td>8</td>\n",
       "      <td>810000</td>\n",
       "    </tr>\n",
       "  </tbody>\n",
       "</table>\n",
       "</div>"
      ],
      "text/plain": [
       "   area  bedrooms  age   price\n",
       "0  2600       3.0   20  550000\n",
       "1  3000       4.0   15  565000\n",
       "2  3200       NaN   18  610000\n",
       "3  3600       3.0   30  595000\n",
       "4  4000       5.0    8  760000\n",
       "5  4100       6.0    8  810000"
      ]
     },
     "execution_count": 2,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "df = pd.read_csv('homeprices.csv')\n",
    "df"
   ]
  },
  {
   "cell_type": "markdown",
   "metadata": {},
   "source": [
    "**Data Preprocessing: Fill NA values with median value of a column**"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 3,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/plain": [
       "4.0"
      ]
     },
     "execution_count": 3,
     "metadata": {},
     "output_type": "execute_result"
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   ],
   "source": [
    "df.bedrooms.median()"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 5,
   "metadata": {},
   "outputs": [
    {
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       "<table border=\"1\" class=\"dataframe\">\n",
       "  <thead>\n",
       "    <tr style=\"text-align: right;\">\n",
       "      <th></th>\n",
       "      <th>area</th>\n",
       "      <th>bedrooms</th>\n",
       "      <th>age</th>\n",
       "      <th>price</th>\n",
       "    </tr>\n",
       "  </thead>\n",
       "  <tbody>\n",
       "    <tr>\n",
       "      <th>0</th>\n",
       "      <td>2600</td>\n",
       "      <td>3.0</td>\n",
       "      <td>20</td>\n",
       "      <td>550000</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>1</th>\n",
       "      <td>3000</td>\n",
       "      <td>4.0</td>\n",
       "      <td>15</td>\n",
       "      <td>565000</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>2</th>\n",
       "      <td>3200</td>\n",
       "      <td>4.0</td>\n",
       "      <td>18</td>\n",
       "      <td>610000</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>3</th>\n",
       "      <td>3600</td>\n",
       "      <td>3.0</td>\n",
       "      <td>30</td>\n",
       "      <td>595000</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>4</th>\n",
       "      <td>4000</td>\n",
       "      <td>5.0</td>\n",
       "      <td>8</td>\n",
       "      <td>760000</td>\n",
       "    </tr>\n",
       "    <tr>\n",
       "      <th>5</th>\n",
       "      <td>4100</td>\n",
       "      <td>6.0</td>\n",
       "      <td>8</td>\n",
       "      <td>810000</td>\n",
       "    </tr>\n",
       "  </tbody>\n",
       "</table>\n",
       "</div>"
      ],
      "text/plain": [
       "   area  bedrooms  age   price\n",
       "0  2600       3.0   20  550000\n",
       "1  3000       4.0   15  565000\n",
       "2  3200       4.0   18  610000\n",
       "3  3600       3.0   30  595000\n",
       "4  4000       5.0    8  760000\n",
       "5  4100       6.0    8  810000"
      ]
     },
     "execution_count": 5,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "df.bedrooms = df.bedrooms.fillna(df.bedrooms.median())\n",
    "df"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 6,
   "metadata": {
    "scrolled": true
   },
   "outputs": [
    {
     "data": {
      "text/plain": [
       "LinearRegression(copy_X=True, fit_intercept=True, n_jobs=None,\n",
       "         normalize=False)"
      ]
     },
     "execution_count": 6,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "reg = linear_model.LinearRegression()\n",
    "reg.fit(df.drop('price',axis='columns'),df.price)"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 7,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/plain": [
       "array([  112.06244194, 23388.88007794, -3231.71790863])"
      ]
     },
     "execution_count": 7,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "reg.coef_"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 8,
   "metadata": {
    "scrolled": true
   },
   "outputs": [
    {
     "data": {
      "text/plain": [
       "221323.00186540408"
      ]
     },
     "execution_count": 8,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "reg.intercept_"
   ]
  },
  {
   "cell_type": "markdown",
   "metadata": {},
   "source": [
    "**Find price of home with 3000 sqr ft area, 3 bedrooms, 40 year old**"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 9,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/plain": [
       "array([498408.25158031])"
      ]
     },
     "execution_count": 9,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "reg.predict([[3000, 3, 40]])"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 10,
   "metadata": {
    "scrolled": true
   },
   "outputs": [
    {
     "data": {
      "text/plain": [
       "498408.25157402386"
      ]
     },
     "execution_count": 10,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "112.06244194*3000 + 23388.88007794*3 + -3231.71790863*40 + 221323.00186540384"
   ]
  },
  {
   "cell_type": "markdown",
   "metadata": {},
   "source": [
    "**Find price of home with 2500 sqr ft area, 4 bedrooms,  5 year old**"
   ]
  },
  {
   "cell_type": "code",
   "execution_count": 11,
   "metadata": {},
   "outputs": [
    {
     "data": {
      "text/plain": [
       "array([578876.03748933])"
      ]
     },
     "execution_count": 11,
     "metadata": {},
     "output_type": "execute_result"
    }
   ],
   "source": [
    "reg.predict([[2500, 4, 5]])"
   ]
  },
  {
   "cell_type": "markdown",
   "metadata": {},
   "source": [
    "<h3>Exercise<h3>"
   ]
  },
  {
   "cell_type": "markdown",
   "metadata": {},
   "source": [
    "In exercise folder (same level as this notebook on github) there is **hiring.csv**. This file contains hiring statics for a firm such as experience of candidate, his written test score and personal interview score. Based on these 3 factors, HR will decide the salary. Given this data, you need to build a machine learning model for HR department that can help them decide salaries for future candidates. Using this predict salaries for following candidates,\n",
    "\n",
    "\n",
    "**2 yr experience, 9 test score, 6 interview score**\n",
    "\n",
    "**12 yr experience, 10 test score, 10 interview score**\n"
   ]
  },
  {
   "cell_type": "markdown",
   "metadata": {},
   "source": [
    "<h3>Answer<h3>"
   ]
  },
  {
   "cell_type": "markdown",
   "metadata": {},
   "source": [
    "53713.86 and 93747.79"
   ]
  }
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