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Question 1_ Simple Linear Regression_You are provided with a CSV file named `Advertising.csv`, containing four columns_ `TV`, `Radio`, `Newspaper`, and `Sales`. Your task is to perform a simple linear regressio (1)

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28 views1 page

Question 1_ Simple Linear Regression_You are provided with a CSV file named `Advertising.csv`, containing four columns_ `TV`, `Radio`, `Newspaper`, and `Sales`. Your task is to perform a simple linear regressio (1)

Business Analytics

Uploaded by

yerika.shrestha1007
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<p dir="auto">To perform a simple linear regression analysis to predict sales based

on advertising spending using the <code>TV</code> column as the independent


variable and <code>Sales</code> as the dependent variable, we can follow these
steps:</p>
<p dir="auto">a) Load the data from the CSV file and explore its contents:
We have provided a dataset with columns <code>TV</code>, <code>Radio</code>,
<code>Newspaper</code>, and <code>Sales</code>. For this analysis, we will focus on
the <code>TV</code> and <code>Sales</code> columns.</p>
<p dir="auto">b) Perform a simple linear regression analysis:
The simple linear regression model can be represented by the equation:
[ y = mx + b ]
where:</p>
<ul dir="auto">
<li>( y ) is the dependent variable (<code>Sales</code> in this case),</li>
<li>( x ) is the independent variable (<code>TV</code> in this case),</li>
<li>( m ) is the slope of the line (coefficient),</li>
<li>( b ) is the intercept.</li>
</ul>
<p dir="auto">c) Calculate and report the regression equation:
To find the regression equation, we need to fit a line to the data. This can be
done using statistical tools like Excel, Python, R, etc. Once the line is fitted,
the equation in the form ( y = mx + b ) can be obtained.</p>
<p dir="auto">d) Plot a scatter plot:
A scatter plot can be created with <code>TV</code> on the x-axis and
<code>Sales</code> on the y-axis. The data points can be plotted, and the
regression line can be overlaid on the plot.</p>
<p dir="auto">e) Calculate and report the R-squared value:
The R-squared (R2) value indicates the goodness of fit of the regression model. It
ranges from 0 to 1, where 1 indicates a perfect fit. The R-squared value can be
calculated based on the regression analysis results.</p>
<p dir="auto">f) Calculate and report the Mean Absolute Error (MAE):
The Mean Absolute Error (MAE) is a measure of the difference between two continuous
variables. It can be calculated as the average of the absolute errors between the
actual and predicted values.</p>
<p dir="auto">For the given dataset, once the regression analysis is performed, the
regression equation, scatter plot, R-squared value, and MAE can be reported to
understand the relationship between <code>TV</code> advertising spending and
<code>Sales</code>.</p>

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