regressionProjectIITK

This repo is for a group project for the course MTH416A : Regression Analysis during the academic session 2021-2022 (even semester) at IIT Kanpur.

Project Title:

Ozone concentration and meteorology in the LA Basin, 1976 - A Regression Study [Report] [Presentation]

Project Guide

Prof. Sharmishtha Mitra, Department of Mathematics and Statistics, IIT Kanpur

Project Members :

• Arkajyoti Bhattacharjee
• Vishweshwar Tyagi
• Saurab Jain
• Apoorva Singh

Project Outline

Setup	Topic
	1. Introduction
	2. Data Description
	3. Exploratory Data Analysis
Parametric	4. Multicollinearity
	Detection: Eigen-decompostion Proportion Variance Inflation Factor Remedy: Variable Drop (Model A) Ridge Regression (Model B) Principal Components Regression (Model C)
	5. Variable Selection
	Selection Methods: Best Subset Selection Mallow's Cp Adjusted $R^2$ AIC vs p Plot Scree Plot and Validation Plot
	6. Heteroscedasticity of Errors
	Detection: Breusch-Pagan Test Remedy: Box-Cox Transformation
	7. Normality of Errors
	Detection: Q-Q Plot Shapiro-Wilks Test
	8. Autocorrelation
	Detection: $\epsilon_t$ vs. $\epsilon_{t-1}$ Plot Durbin-Watson Test Remedy: ARIMA Fitting
	9. Prediction
Nonparametric	10. Alternating Conditional Expectation (ACE) Optimal Transformations Plot
	11. Final Model Fit and Predictions

Summary of Fitted Models:

Model Type	Model Name	$R^2$	RMSE
Parametric	Model 0	0.6986	4.2745
	Model A	0.7662	0.8272
	Model B	0.7202	0.8830
	Model C	0.7077	1.2565
Nonparametric	ACE	0.8271	0.3132

Conclusions:

• Among the parametric models, model A has the highest $R^2$ value as well as the lowest $RMSE$ value.
• All models - A, B and C are better than the baseline model Model 0. This validates our corrections for multicollinearity, heteroscedasticity and autocorrelation and variable selection.
• Simple non-parametric models are better if the problem of prediction is to be solved. But here, the ACE model transforms the data so that maximum $R^2$ can be achieved. And, as expected it has the highest $R^2$ value and the lowest $RMSE$ value amond all the models.
• So among the models considered here, ACE model is the best, both for the problem of prediction and for the purpose of explaining ozone concentration by the meteorological variables based on the ozone dataset.

References:

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