In [1]: import warnings

warnings.filterwarnings('ignore')
import pandas as pd
import numpy as np
np.set_printoptions(precision=6, linewidth=100)

In [2]: mba_salary_df = pd.read_csv( 'MBA Salary.csv' )

mba_salary_df.head( 10 )

Out[2]: S. No. Percentage in Grade 10 Salary

0 1 62.00 270000

1 2 76.33 200000

2 3 72.00 240000

3 4 60.00 250000

4 5 61.00 180000

5 6 55.00 300000

6 7 70.00 260000

7 8 68.00 235000

8 9 82.80 425000

9 10 59.00 240000

In [3]: mba_salary_df.info()

<class 'pandas.core.frame.DataFrame'>
RangeIndex: 50 entries, 0 to 49
Data columns (total 3 columns):
# Column Non-Null Count Dtype
--- ------ -------------- -----
0 S. No. 50 non-null int64
1 Percentage in Grade 10 50 non-null float64
2 Salary 50 non-null int64
dtypes: float64(1), int64(2)
memory usage: 1.3 KB

Creating Feature Set(X) and Outcome Variable(Y)

In [4]: import statsmodels.api as sm
X = sm.add_constant( mba_salary_df['Percentage in Grade 10'] )
X.head(5)

Out[4]: const Percentage in Grade 10

0 1.0 62.00

1 1.0 76.33

2 1.0 72.00

3 1.0 60.00

4 1.0 61.00

In [5]: Y = mba_salary_df['Salary']
 Splitting the dataset into training and validation sets
In [6]: from sklearn.model_selection import train_test_split
train_X, test_X, train_y, test_y = train_test_split( X , Y, train_size =

Fitting the Model

In [7]: mba_salary_lm = sm.OLS( train_y, train_X ).fit()

Printing Estimated Parameters and interpreting them

In [8]: print( mba_salary_lm.params )

const 30587.285652
Percentage in Grade 10 3560.587383
dtype: float64

Model Diagnostics
In [9]: mba_salary_lm.summary2()

Out[9]: Model: OLS Adj. R-squared: 0.190

Dependent Variable: Salary AIC: 1008.8680

Date: 2022-12-04 09:06 BIC: 1012.2458

No. Observations: 40 Log-Likelihood: -502.43

Df Model: 1 F-statistic: 10.16

Df Residuals: 38 Prob (F-statistic): 0.00287

R-squared: 0.211 Scale: 5.0121e+09

Coef. Std.Err. t P>|t| [0.025 0.975]

const 30587.2857 71869.4497 0.4256 0.6728 -114904.8089 176079.3802

Percentage in Grade
3560.5874 1116.9258 3.1878 0.0029 1299.4892 5821.6855
10

Omnibus: 2.048 Durbin-Watson: 2.611

Prob(Omnibus): 0.359 Jarque-Bera (JB): 1.724

Skew: 0.369 Prob(JB): 0.422

Kurtosis: 2.300 Condition No.: 413

Making prediction using the model

Predicting on validation set

In [10]: pred_y = mba_salary_lm.predict( test_X )

In [11]: from sklearn.metrics import r2_score, mean_squared_error

np.abs(r2_score(test_y, pred_y))
 0.156645849742304
Out[11]:

In [12]: np.sqrt(mean_squared_error(test_y, pred_y))

73458.04348346895
Out[12]:

Calculating prediction intervals

In [13]: from statsmodels.sandbox.regression.predstd import wls_prediction_std
# Predict the y values
pred_y = mba_salary_lm.predict( test_X )

# Store all the values in a dataframe

pred_y_df = pd.DataFrame( { 'grade_10_perc': test_X['Percentage in Grade
'pred_y': pred_y } )

In [14]: pred_y_df[0:10]

Out[14]: grade_10_perc pred_y

6 70.0 279828.402452

36 68.0 272707.227686

37 52.0 215737.829560

28 58.0 237101.353858

43 74.5 295851.045675

49 60.8 247070.998530

5 55.0 226419.591709

33 78.0 308313.101515

20 63.0 254904.290772

42 74.4 295494.986937

MULTIPLE LINEAR REGRESSION

In [15]: ipl_auction_df = pd.read_csv( 'IPL IMB381IPL2013.csv' )
ipl_auction_df.head(5)
Out[15]: ODI-
PLAYER PLAYING T- T- ODI-
Sl.NO. AGE COUNTRY TEAM RUNS- ...
NAME ROLE RUNS WKTS SR-B
S

Abdulla,
0 1 2 SA KXIP Allrounder 0 0 0 0.00 ...
YA

Abdur
1 2 2 BAN RCB Bowler 214 18 657 71.41 ...
Razzak

Agarkar,
2 3 2 IND KKR Bowler 571 58 1269 80.62 ... 12
AB

3 4 Ashwin, R 1 IND CSK Bowler 284 31 241 84.56 ... 7

Badrinath,
4 5 2 IND CSK Batsman 63 0 79 45.93 ... 12
S

5 rows × 26 columns

In [16]: ipl_auction_df.info()

<class 'pandas.core.frame.DataFrame'>
RangeIndex: 130 entries, 0 to 129
Data columns (total 26 columns):
# Column Non-Null Count Dtype
--- ------ -------------- -----
0 Sl.NO. 130 non-null int64
1 PLAYER NAME 130 non-null object
2 AGE 130 non-null int64
3 COUNTRY 130 non-null object
4 TEAM 130 non-null object
5 PLAYING ROLE 130 non-null object
6 T-RUNS 130 non-null int64
7 T-WKTS 130 non-null int64
8 ODI-RUNS-S 130 non-null int64
9 ODI-SR-B 130 non-null float64
10 ODI-WKTS 130 non-null int64
11 ODI-SR-BL 130 non-null float64
12 CAPTAINCY EXP 130 non-null int64
13 RUNS-S 130 non-null int64
14 HS 130 non-null int64
15 AVE 130 non-null float64
16 SR-B 130 non-null float64
17 SIXERS 130 non-null int64
18 RUNS-C 130 non-null int64
19 WKTS 130 non-null int64
20 AVE-BL 130 non-null float64
21 ECON 130 non-null float64
22 SR-BL 130 non-null float64
23 AUCTION YEAR 130 non-null int64
24 BASE PRICE 130 non-null int64
25 SOLD PRICE 130 non-null int64
dtypes: float64(7), int64(15), object(4)
memory usage: 26.5+ KB

In [17]: X_features = ipl_auction_df.columns

In [18]: X_features = ['AGE', 'COUNTRY', 'PLAYING ROLE',

'T-RUNS', 'T-WKTS', 'ODI-RUNS-S', 'ODI-SR-B',
'ODI-WKTS', 'ODI-SR-BL', 'CAPTAINCY EXP', 'RUNS-S',
'HS', 'AVE', 'SR-B', 'SIXERS', 'RUNS-C', 'WKTS',
'AVE-BL', 'ECON', 'SR-BL']
 Encoding Categorical Variables
In [19]: ipl_auction_df['PLAYING ROLE'].unique()

array(['Allrounder', 'Bowler', 'Batsman', 'W. Keeper'], dtype=object)

Out[19]:

In [20]: pd.get_dummies(ipl_auction_df['PLAYING ROLE'])[0:5]

Out[20]: Allrounder Batsman Bowler W. Keeper

0 1 0 0 0

1 0 0 1 0

2 0 0 1 0

3 0 0 1 0

4 0 1 0 0

In [21]: categorical_features = ['AGE', 'COUNTRY', 'PLAYING ROLE', 'CAPTAINCY EXP'

In [22]: ipl_auction_encoded_df = pd.get_dummies( ipl_auction_df[X_features],

columns = categorical_features,
drop_first = True )

In [23]: ipl_auction_encoded_df.columns

Index(['T-RUNS', 'T-WKTS', 'ODI-RUNS-S', 'ODI-SR-B', 'ODI-WKTS', 'ODI-SR-

Out[23]:
BL',
'RUNS-S', 'HS', 'AVE', 'SR-B', 'SIXERS', 'RUNS-C', 'WKTS', 'AVE-B
L',
'ECON', 'SR-BL', 'AGE_2', 'AGE_3', 'COUNTRY_BAN', 'COUNTRY_ENG',
'COUNTRY_IND', 'COUNTRY_NZ', 'COUNTRY_PAK', 'COUNTRY_SA', 'COUNTRY
_SL',
'COUNTRY_WI', 'COUNTRY_ZIM', 'PLAYING ROLE_Batsman',
'PLAYING ROLE_Bowler', 'PLAYING ROLE_W. Keeper', 'CAPTAINCY EXP_
1'],
dtype='object')

In [24]: X_features = ipl_auction_encoded_df.columns

In [25]: import statsmodels.api as sm

from sklearn.model_selection import train_test_split
X = sm.add_constant( ipl_auction_encoded_df )
#X.head(5)
Y = ipl_auction_df['SOLD PRICE']
train_X, test_X, train_y, test_y = train_test_split( X ,
Y,
train_size = 0.8,
random_state = 42 )

Building the model on training dataset

In [26]: ipl_model_1 = sm.OLS(train_y, train_X).fit()
ipl_model_1.summary2()
Out[26]: Model: OLS Adj. R-squared: 0.362

Dependent Variable: SOLD PRICE AIC: 2965.2841

Date: 2022-12-04 09:06 BIC: 3049.9046

No. Observations: 104 Log-Likelihood: -1450.6

Df Model: 31 F-statistic: 2.883

Df Residuals: 72 Prob (F-statistic): 0.000114

R-squared: 0.554 Scale: 1.1034e+11

Coef. Std.Err. t P>|t| [0.025 0.975]

const 375827.1991 228849.9306 1.6422 0.1049 -80376.7996 832031.1978

T-RUNS -53.7890 32.7172 -1.6441 0.1045 -119.0096 11.4316

T-WKTS -132.5967 609.7525 -0.2175 0.8285 -1348.1162 1082.9228

ODI-RUNS-S 57.9600 31.5071 1.8396 0.0700 -4.8482 120.7681

ODI-SR-B -524.1450 1576.6368 -0.3324 0.7405 -3667.1130 2618.8231

ODI-WKTS 815.3944 832.3883 0.9796 0.3306 -843.9413 2474.7301

ODI-SR-BL -773.3092 1536.3334 -0.5033 0.6163 -3835.9338 2289.3154

RUNS-S 114.7205 173.3088 0.6619 0.5101 -230.7643 460.2054

HS -5516.3354 2586.3277 -2.1329 0.0363 -10672.0855 -360.5853

AVE 21560.2760 7774.2419 2.7733 0.0071 6062.6080 37057.9439

SR-B -1324.7218 1373.1303 -0.9647 0.3379 -4062.0071 1412.5635

SIXERS 4264.1001 4089.6000 1.0427 0.3006 -3888.3685 12416.5687

RUNS-C 69.8250 297.6697 0.2346 0.8152 -523.5687 663.2187

WKTS 3075.2422 7262.4452 0.4234 0.6732 -11402.1778 17552.6622

AVE-BL 5182.9335 10230.1581 0.5066 0.6140 -15210.5140 25576.3810

ECON -6820.7781 13109.3693 -0.5203 0.6045 -32953.8282 19312.2721

SR-BL -7658.8094 14041.8735 -0.5454 0.5871 -35650.7726 20333.1539

AGE_2 -230767.6463 114117.2005 -2.0222 0.0469 -458256.1279 -3279.1648

AGE_3 -216827.0808 152246.6232 -1.4242 0.1587 -520325.1772 86671.0155

COUNTRY_BAN -122103.5196 438719.2796 -0.2783 0.7816 -996674.4194 752467.3801

COUNTRY_ENG 672410.7654 238386.2220 2.8207 0.0062 197196.5172 1147625.0135

COUNTRY_IND 155306.4011 126316.3449 1.2295 0.2229 -96500.6302 407113.4325

COUNTRY_NZ 194218.9120 173491.9293 1.1195 0.2667 -151630.9280 540068.7521

COUNTRY_PAK 75921.7670 193463.5545 0.3924 0.6959 -309740.7804 461584.3143

COUNTRY_SA 64283.3894 144587.6773 0.4446 0.6579 -223946.8775 352513.6563

COUNTRY_SL 17360.1530 176333.7497 0.0985 0.9218 -334154.7526 368875.0586

COUNTRY_WI 10607.7792 230686.7892 0.0460 0.9635 -449257.9303 470473.4887

COUNTRY_ZIM -145494.4793 401505.2815 -0.3624 0.7181 -945880.6296 654891.6710

PLAYING
75724.7643 150250.0240 0.5040 0.6158 -223793.1844 375242.7130
ROLE_Batsman

PLAYING 15395.8752 126308.1272 0.1219 0.9033 -236394.7744 267186.5249

 ROLE_Bowler

PLAYING
-71358.6280 213585.7444 -0.3341 0.7393 -497134.0278 354416.7718
ROLE_W. Keeper

CAPTAINCY
164113.3972 123430.6353 1.3296 0.1878 -81941.0772 410167.8716
EXP_1

Omnibus: 0.891 Durbin-Watson: 2.244

Prob(Omnibus): 0.640 Jarque-Bera (JB): 0.638

Skew: 0.190 Prob(JB): 0.727

Kurtosis: 3.059 Condition No.: 84116

Multi-Collinearity
VIF

In [27]: from statsmodels.stats.outliers_influence import variance_inflation_facto

def get_vif_factors( X ):
X_matrix = X.to_numpy()
vif = [ variance_inflation_factor( X_matrix, i ) for i in range( X_matri
vif_factors = pd.DataFrame()
vif_factors['column'] = X.columns
vif_factors['vif'] = vif
return vif_factors

In [28]: vif_factors = get_vif_factors( X[X_features] )

vif_factors
Out[28]: column vif

0 T-RUNS 12.612694

1 T-WKTS 7.679284

2 ODI-RUNS-S 16.426209

3 ODI-SR-B 13.829376

4 ODI-WKTS 9.951800

5 ODI-SR-BL 4.426818

6 RUNS-S 16.135407

7 HS 22.781017

8 AVE 25.226566

9 SR-B 21.576204

10 SIXERS 9.547268

11 RUNS-C 38.229691

12 WKTS 33.366067

13 AVE-BL 100.198105

14 ECON 7.650140

15 SR-BL 103.723846

16 AGE_2 6.996226

17 AGE_3 3.855003

18 COUNTRY_BAN 1.469017

19 COUNTRY_ENG 1.391524

20 COUNTRY_IND 4.568898

21 COUNTRY_NZ 1.497856

22 COUNTRY_PAK 1.796355

23 COUNTRY_SA 1.886555

24 COUNTRY_SL 1.984902

25 COUNTRY_WI 1.531847

26 COUNTRY_ZIM 1.312168

27 PLAYING ROLE_Batsman 4.843136

28 PLAYING ROLE_Bowler 3.795864

29 PLAYING ROLE_W. Keeper 3.132044

30 CAPTAINCY EXP_1 4.245128

In [29]: columns_with_large_vif = vif_factors[vif_factors.vif > 4].column

In [30]: import matplotlib.pyplot as plt

import seaborn as sn
%matplotlib inline

In [31]: plt.figure( figsize = (12,10) )

sn.heatmap( X[columns_with_large_vif].corr(), annot = True );
plt.title( "Figure 4.5 - Heatmap depicting correlation between features")
In [32]: columns_to_be_removed = ['T-RUNS', 'T-WKTS', 'RUNS-S', 'HS',
'AVE', 'RUNS-C', 'SR-B', 'AVE-BL',
'ECON', 'ODI-SR-B', 'ODI-RUNS-S', 'AGE_2', 'SR-BL']

In [33]: X_new_features = list( set(X_features) - set(columns_to_be_removed) )

In [34]: get_vif_factors( X[X_new_features] )

Out[34]: column vif

0 SIXERS 2.397409

1 COUNTRY_BAN 1.094293

2 CAPTAINCY EXP_1 2.458745

3 COUNTRY_NZ 1.173418

4 COUNTRY_ENG 1.131869

5 COUNTRY_SA 1.416657

6 COUNTRY_ZIM 1.205305

7 WKTS 2.883101

8 PLAYING ROLE_W. Keeper 1.900941

9 PLAYING ROLE_Bowler 3.060168

10 COUNTRY_WI 1.194093

11 COUNTRY_SL 1.519752

12 ODI-SR-BL 2.822148

13 PLAYING ROLE_Batsman 2.680207

14 AGE_3 1.779861

15 COUNTRY_PAK 1.334773

16 COUNTRY_IND 3.144668

17 ODI-WKTS 2.742889

Building a new model after removing multicollinearity

In [35]: train_X = train_X[X_new_features]

ipl_model_2 = sm.OLS(train_y, train_X).fit()
ipl_model_2.summary2()
Out[35]: Model: OLS Adj. R-squared (uncentered): 0.728

Dependent Variable: SOLD PRICE AIC: 2965.1080

Date: 2022-12-04 09:06 BIC: 3012.7070

No. Observations: 104 Log-Likelihood: -1464.6

Df Model: 18 F-statistic: 16.49

Df Residuals: 86 Prob (F-statistic): 1.13e-20

R-squared (uncentered): 0.775 Scale: 1.2071e+11

Coef. Std.Err. t P>|t| [0.025 0.975]

SIXERS 7862.1259 2086.6101 3.7679 0.0003 3714.0824 12010.1694

COUNTRY_BAN -108758.6040 369274.1916 -0.2945 0.7691 -842851.4010 625334.1930

CAPTAINCY
208376.6957 98128.0284 2.1235 0.0366 13304.6315 403448.7600
EXP_1

COUNTRY_NZ 142968.8843 151841.7382 0.9416 0.3491 -158882.5009 444820.2695

COUNTRY_ENG 682934.7166 216150.8279 3.1595 0.0022 253241.0920 1112628.3411

COUNTRY_SA 108735.9086 115092.9596 0.9448 0.3474 -120061.3227 337533.1399

COUNTRY_ZIM -67977.6781 390859.9289 -0.1739 0.8623 -844981.5006 709026.1444

WKTS 2431.8988 2105.3524 1.1551 0.2512 -1753.4033 6617.2008

PLAYING
-55121.9240 169922.5271 -0.3244 0.7464 -392916.7280 282672.8801
ROLE_W. Keeper

PLAYING
-18315.4968 106035.9664 -0.1727 0.8633 -229108.0215 192477.0279
ROLE_Bowler

COUNTRY_WI -22234.9315 213050.5847 -0.1044 0.9171 -445765.4766 401295.6135

COUNTRY_SL 55912.3398 142277.1829 0.3930 0.6953 -226925.3388 338750.0184

ODI-SR-BL 909.0021 1267.4969 0.7172 0.4752 -1610.6983 3428.7026

PLAYING
121382.0570 106685.0356 1.1378 0.2584 -90700.7746 333464.8886
ROLE_Batsman

AGE_3 -8950.6659 98041.9325 -0.0913 0.9275 -203851.5772 185950.2453

COUNTRY_PAK 122810.2480 159600.8063 0.7695 0.4437 -194465.6541 440086.1502

COUNTRY_IND 282829.8091 96188.0292 2.9404 0.0042 91614.3356 474045.2827

ODI-WKTS 772.4088 470.6354 1.6412 0.1044 -163.1834 1708.0009

Omnibus: 8.635 Durbin-Watson: 2.252

Prob(Omnibus): 0.013 Jarque-Bera (JB): 8.345

Skew: 0.623 Prob(JB): 0.015

Kurtosis: 3.609 Condition No.: 1492

In [36]: significant_vars = ['COUNTRY_IND', 'COUNTRY_ENG', 'SIXERS', 'CAPTAINCY EX

train_X = train_X[significant_vars]
ipl_model_3 = sm.OLS(train_y, train_X).fit()
ipl_model_3.summary2()
Out[36]: Model: OLS Adj. R-squared (uncentered): 0.704

Dependent Variable: SOLD PRICE AIC: 2961.8089

Date: 2022-12-04 09:06 BIC: 2972.3864

No. Observations: 104 Log-Likelihood: -1476.9

Df Model: 4 F-statistic: 62.77

Df Residuals: 100 Prob (F-statistic): 1.97e-26

R-squared (uncentered): 0.715 Scale: 1.3164e+11

Coef. Std.Err. t P>|t| [0.025 0.975]

COUNTRY_IND 387890.2538 63007.1511 6.1563 0.0000 262885.8606 512894.6471

COUNTRY_ENG 731833.6386 214164.4988 3.4172 0.0009 306937.3727 1156729.9045

SIXERS 8637.8344 1675.1313 5.1565 0.0000 5314.4216 11961.2472

CAPTAINCY EXP_1 359725.2741 74930.3460 4.8008 0.0000 211065.6018 508384.9463

Omnibus: 1.130 Durbin-Watson: 2.238

Prob(Omnibus): 0.568 Jarque-Bera (JB): 0.874

Skew: 0.223 Prob(JB): 0.646

Kurtosis: 3.046 Condition No.: 165

In [ ]: