Answer for sm.add_constants()

https://365datascience.com/dwqa-answer/answer-for-sm-add_constants/ -

Hi Anuridh,

Thanks for reaching out.

OLS requires the input to have a column of ones. We need to add this column manually.

x = sm.add_constant(x1) 

adds a column of ones to the x1 array (data['SAT']). Here is the head of x:


As you can see, a column of ones is added to SAT. This column of ones corresponds to x_0 in the simple linear regression equation: y_hat = b_0 * x_0 + b_1 * x_1. As explained in the lecture video, x_0 is always one and thus the regression equation becomes: y_hat = b_0 * 1 + b_1 * x_1. The x array holds 1 and x_1.

Best,
The 365 Team

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