What is ordinary least square model?

Last updated Nov 21, 2022

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OLS (Ordinary Least Square) is a stats model, which will help us in identifying the more significant features that can has an influence on the output.

OLS model in python is executed as:

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lm = smf.ols(formula='Sales ~ am + constant', data=data).fit()
lm.conf_int()
lm.summary()

and we got the output as below,

The higher the t-value for the feature, the more significant the feature is to the output variable. The p-value plays a rule in rejecting the null hypothesis. If the p-value is less than 0.05 (95% confidence interval) for a feature, then we can consider the feature to be significant.