Exercise: Visualizing Regression Plots

Exercise 1

Create a scatter plot with the Sales variable plotted against TV. Include a red trendline of the line of best fit using Ordinary Least Squares (OLS). What is the $R^2$ value?

Solution

• A scatter plot is created using the px.scatter() function on line 2 with the advertising DataFrame. The x parameter is set to TV to specify the x-axis data, and the y parameter is set to Sales to specify the y-axis data. The trendline parameter is set to ols to add a linear regression line to the plot. The trendline_color_override parameter is set to red to override the default color of the trendline with red color.

• The update_layout() function on line 7 is used to set the title of the figure to “Sales vs. TV Advertising (with OLS line estimate).”

Note: From the graph, we see that the $R^2$ is 0.81.