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Regression Analysis with R
Regression Analysis with R

Regression Analysis with R: Design and develop statistical nodes to identify unique relationships within data at scale

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Regression Analysis with R

Basic Concepts – Simple Linear Regression

In Chapter 1, Getting Started with Regression, we understood the concept of regression through the basic principles that govern its algorithms. Moreover, we were been able to discover the different types of regression that make it a real family of algorithms that can solve the most varied types of problems. In this book, we will learn more about all of them, but for now, let us begin with the basic concepts from the simpler algorithm, as indicated by its name: simple linear regression.

As we will see, simple linear regression is easy to understand but represents the basis of regression techniques; once these concepts are understood, it will be easier for us to address the other types of regression. To begin with, let's take an example of applying linear regression taken from the real world.

Consider some data...

Association between variables – covariance and correlation

In the previous chapter, we introduced correlation concepts, and it is now necessary to deepen these concepts. This will help us understand how to use this information in advance and find possible relationships between variables. Let's start with a real example: a company at the launch of a new printer model wants to analyze sales at a number of stores to determine the best price. The following table shows the sales of the product in the last month and the sale price for these stores:

...

Store

SoldItems

Price

Store

SoldItems

Price

Store1

100

60

Store11

145

42

Store2

150

43

Store12

125

47

Store3

130

48

Store13

135

44

Store4

140

45

Store14

105

54

Store5

110

55

Store15

155

39

Store6

160

40

Store16

110

52

Store7

Searching linear relationships

In the previous section, we learned that the coefficient of correlation between two quantitative variables X and Y provides information on the existence of a linear relation between the two variables. This index, however, does not allow determining whether it is X that affects Y, if it is Y that affects X, or whether both X and Y are consequences of a phenomenon that affects both of them. Only more knowledge of the problem under study can allow some hypothesis of the dependence of one variable on another.

If a correlation between two variables is not found, it does not necessarily imply that they are independent, because they might have a nonlinear relationship.

Calculating correlation and covariance is a useful way to investigate whether there exists a linear relationship between variables, without the need to assume or fit a specific model...

Least squares regression

In the previous section, we saw an example of simple linear regression, built the model, and now have a brief description of it. Next, we will explain the results in detail. We will get started by introducing the key concepts, with another simple linear regression example; we will just use data in the form of a spreadsheet containing the number of vehicles registered in Italy and the population of the different regions. Using this data we will try to determine the line that best estimates the relationship between the population and number of registered vehicles. We can do this in various different ways; we will begin with the simplest. Previously, we said that a linear relationship is represented by the following formula:

If we have a set of observations in the form (x1, y1), (x2, y2), ... (xn, yn), for each of these pairs we can write an equation of...

Creating a linear regression model

In the previous section, we adopted an algebraic approach to calculating the regression line. More generally, to create a linear regression model, we use the lm() function. This function creates a LinearModel object. The object of class lm has a series of properties that can be immediately viewed by simply clicking on it. These types of objects can be used for residual analysis and regression diagnosis. 

LinearModel is an object comprised of data, model description, diagnostic information, and fitted coefficients for a linear regression.

Models for the lm() function are specified symbolically. In fact, the first argument of the function is an object of class formula. A typical formula object has the following form:

response ~ terms

response represents the (numeric) response vector and terms is a series of terms specifying a linear...

Modeling a perfect linear association

So far, we have explored several real cases for which we have searched linear associations, and therefore we have built models of simple linear regression. Next, we tried to analyze the results to confirm the goodness of fit in the simulation of the real system. At this point, it is reasonable to wonder what results of a model perfectly fit a linear system. In this way we will know how to distinguish between a model with a good approximation to what is wrong. In this last case, clearly indicating a nonlinear relationship remains the best solution.

Previously, we said that a simple linear relationship is represented by the following formula:

Here, α and β, represent, respectively, the slope and the intercept with the y axis of the regression line. That being said, we build a dummy system by deciding a priori...

Summary

In this chapter, we introduced regression with the simplest algorithm: simple linear regression. We first described a regression problem and where to fit a regressor, and then provided some intuitions underneath the math formulation. Then, we learned how to tune the model for higher performance, and came to deeply understand every parameter of it. In addition, some tricks were described to lower the complexity and scaling of the approach.

To start, we explored the coefficient of correlation between two quantitative variables X and Y, which provides information on the existence of a linear relation between the two variables. We understood that this coefficient does not allow us to determine whether it is X that affects Y, of whether it is Y that affects X, or whether both X and Y are consequences of a phenomenon that affects both of them. Only more knowledge of the problem...

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Key benefits

  • Implement different regression analysis techniques to solve common problems in data science - from data exploration to dealing with missing values
  • From Simple Linear Regression to Logistic Regression - this book covers all regression techniques and their implementation in R
  • A complete guide to building effective regression models in R and interpreting results from them to make valuable predictions

Description

Regression analysis is a statistical process which enables prediction of relationships between variables. The predictions are based on the casual effect of one variable upon another. Regression techniques for modeling and analyzing are employed on large set of data in order to reveal hidden relationship among the variables. This book will give you a rundown explaining what regression analysis is, explaining you the process from scratch. The first few chapters give an understanding of what the different types of learning are – supervised and unsupervised, how these learnings differ from each other. We then move to covering the supervised learning in details covering the various aspects of regression analysis. The outline of chapters are arranged in a way that gives a feel of all the steps covered in a data science process – loading the training dataset, handling missing values, EDA on the dataset, transformations and feature engineering, model building, assessing the model fitting and performance, and finally making predictions on unseen datasets. Each chapter starts with explaining the theoretical concepts and once the reader gets comfortable with the theory, we move to the practical examples to support the understanding. The practical examples are illustrated using R code including the different packages in R such as R Stats, Caret and so on. Each chapter is a mix of theory and practical examples. By the end of this book you will know all the concepts and pain-points related to regression analysis, and you will be able to implement your learning in your projects.

Who is this book for?

This book is intended for budding data scientists and data analysts who want to implement regression analysis techniques using R. If you are interested in statistics, data science, machine learning and wants to get an easy introduction to the topic, then this book is what you need! Basic understanding of statistics and math will help you to get the most out of the book. Some programming experience with R will also be helpful

What you will learn

  • Get started with the journey of data science using Simple linear regression
  • Deal with interaction, collinearity and other problems using multiple linear regression
  • Understand diagnostics and what to do if the assumptions fail with proper analysis
  • Load your dataset, treat missing values, and plot relationships with exploratory data analysis
  • Develop a perfect model keeping overfitting, under-fitting, and cross-validation into consideration
  • Deal with classification problems by applying Logistic regression
  • Explore other regression techniques – Decision trees, Bagging, and Boosting techniques
  • Learn by getting it all in action with the help of a real world case study.
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Table of Contents

10 Chapters
Getting Started with Regression Chevron down icon Chevron up icon
Basic Concepts – Simple Linear Regression Chevron down icon Chevron up icon
More Than Just One Predictor – MLR Chevron down icon Chevron up icon
When the Response Falls into Two Categories – Logistic Regression Chevron down icon Chevron up icon
Data Preparation Using R Tools Chevron down icon Chevron up icon
Avoiding Overfitting Problems - Achieving Generalization Chevron down icon Chevron up icon
Going Further with Regression Models Chevron down icon Chevron up icon
Beyond Linearity – When Curving Is Much Better Chevron down icon Chevron up icon
Regression Analysis in Practice Chevron down icon Chevron up icon
Other Books You May Enjoy Chevron down icon Chevron up icon

Customer reviews

Rating distribution
Full star icon Full star icon Full star icon Full star icon Half star icon 4.7
(3 Ratings)
5 star 66.7%
4 star 33.3%
3 star 0%
2 star 0%
1 star 0%
Vincenzo Ferraro Mar 13, 2018
Full star icon Full star icon Full star icon Full star icon Full star icon 5
This book has a lot to offer both in terms of theory and code. It is a simple book that does not require a great deal of knowledge of R. The most widespread statistical techniques are treated in a simple way. There are also many examples available to immediately apply the concepts learned.
Amazon Verified review Amazon
TR Mar 13, 2018
Full star icon Full star icon Full star icon Full star icon Full star icon 5
I ordered this book to prepare for a university exams and I found it really interesting and very clear. For those who want to have a base I highly recommend it. In addition to explaining the concepts well is full of examples that seriously help to understand the operation of various algorithms.
Amazon Verified review Amazon
Hitomi Cranford Oct 27, 2018
Full star icon Full star icon Full star icon Full star icon Empty star icon 4
I was hoping for more in terms of multicollinearity. Discussion of the tidyverse library to build amazing multiple linear regressions would have been awesome but that doesn't take away from the fact that this book is a really good start!
Amazon Verified review Amazon
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