In the lecture example, it mentioned the following code: # Add a constant. Essentially, we are adding a new column (equal in length to x), which consists only of 1s x = sm.add_constant(x1) # Fit the model, according to the OLS (ordinary least squares) method with a dependent variable y and an independent x results = sm.OLS(y,x).fit() # Print a nice summary of the regression. That's one of the strong points of statsmodels -> the summaries results.summary() I don't understand what the sm.add_constant do, and why are we fitting x instead of x1 to the statsmodels?

Hi Kam, Good question! It is explained in the subsequent lectures! If after watching them until the end of the section you are still having this question, please come back here and we will dive deeper into it :) Best,The 365 Team

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Kam Hin Ho

Last answered:

March 22, 2020

Posted on:

March 20, 2020

Question on simple linear regression example.

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365 Team

Posted on:

March 22, 2020

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