Let's dive in. Article Resources. Notebook and Data: GitHub; Libraries: numpy, pandas, matplotlib, seaborn, statsmodels ...Theinternet'sbestdatasciencecoursesViewCoursesTogglenavigationDailyLearningCurriculumTutorialsArticlesGlossaryBooksSolutionsCoursesDataScienceMachineLearningTeam4062.6KYouarereadingtutorials240SHARESAuthor:TimDobbinsEngineer&StatisticianAuthor:JohnBurkeResearchAnalystPredictingHousingPriceswithLinearRegressionusingPython,pandas,andstatsmodelsInthispost,we'llwalkthroughbuildinglinearregressionmodelstopredicthousingpricesresultingfromeconomicactivity.Youshouldalreadyknow:PythonfundamentalsSomePandasexperienceLearnbothinteractivelythroughdataquest.ioThispostwillwalkyouthroughbuildinglinearregressionmodelstopredicthousingpricesresultingfromeconomicactivity.Futurepostswillcoverrelatedtopicssuchasexploratoryanalysis,regressiondiagnostics,andadvancedregressionmodeling,butIwantedtojumprightinsoreaderscouldgettheirhandsdirtywithdata.Ifyouwouldliketoseeanythinginparticular,feelfreetoleaveacommentbelow.Let'sdivein.ArticleResourcesNotebookandData:GitHubLibraries:numpy,pandas,matplotlib,seaborn,statsmodelsWhatisRegression?Linearregressionisamodelthatpredictsarelationshipofdirectproportionalitybetweenthedependentvariable(plottedontheverticalorYaxis)andthepredictorvariables(plottedontheXaxis)thatproducesastraightline,likeso:Linearregressionwillbediscussedingreaterdetailaswemovethroughthemodelingprocess.VariableSelectionForourdependentvariablewe'llusehousing_price_index(HPI),whichmeasurespricechangesofresidentialhousing.Forourpredictorvariables,weuseourintuitiontoselectdriversofmacro-(or“bigpicture”)economicactivity,suchasunemployment,interestrates,andgrossdomesticproduct(totalproductivity).Foranexplanationofourvariables,includingassumptionsabouthowtheyimpacthousingprices,andallthesourcesofdatausedinthispost,seehere.ReadingintheDatawithpandasBeforeanything,let'sgetourimportsforthistutorialoutoftheway.Thefirstimportisjusttochangehowtablesappearintheaccompanyingn