##Example 2: Toyota Used Car Prices

toyota <- read.csv("D:/CIM LAVASA/2017-18/Subjects Taught-2017-18/Data Mining in

R/DataSets/ToyotaCorolla.csv")
toyota[1:3,]
summary(toyota)
hist(toyota$Price)
## next we create indicator variables for the categorical variable
## FuelType with its three nominal outcomes: CNG, Diesel, and Petrol
v1=rep(1,length(toyota$FuelType))
v2=rep(0,length(toyota$FuelType))
toyota$FuelType1=ifelse(toyota$FuelType=="CNG",v1,v2)
toyota$FuelType2=ifelse(toyota$FuelType=="Diesel",v1,v2)
#Remove the variable fuel type
auto=toyota[-4]
#check whether the if condition works using the first three rows
auto[1:3,]
plot(Price~Age,data=auto)
plot(Price~KM,data=auto)
plot(Price~HP,data=auto)
plot(Price~MetColor,data=auto)
plot(Price~Automatic,data=auto)
plot(Price~CC,data=auto)
plot(Price~Doors,data=auto)
plot(Price~Weight,data=auto)

## regression on all data

m1=lm(Price~.,data=auto)
summary(m1)

set.seed(1)
## fixing the seed value for the random selection guarantees the
## same results in repeated runs
n=length(auto$Price)
n1=1000
n2=n-n1
train=sample(1:n,n1)
#Read documentation about the command sample

## regression on training set

m1=lm(Price~.,data=auto[train,])
summary(m1)
pred=predict(m1,newdat=auto[-train,])
obs=auto$Price[-train]
diff=obs-pred
percdiff=abs(diff)/obs
me=mean(diff)
rmse=sqrt(sum(diff**2)/n2)
mape=100*(mean(percdiff))
me # mean error
rmse # root mean square error
mape # mean absolute percent error

## cross-validation (leave one out)

n=length(auto$Price)
diff=dim(n)
percdiff=dim(n)
for (k in 1:n) {
train1=c(1:n)
 train=train1[train1!=k]
m1=lm(Price~.,data=auto[train,])
pred=predict(m1,newdat=auto[-train,])
obs=auto$Price[-train]
diff[k]=obs-pred
percdiff[k]=abs(diff[k])/obs
}
me=mean(diff)
rmse=sqrt(mean(diff**2))
mape=100*(mean(percdiff))
me # mean error
rmse # root mean square error
mape # mean absolute percent error

## cross-validation (leave one out): Model with just Age

n=length(auto$Price)
diff=dim(n)
percdiff=dim(n)
for (k in 1:n) {
train1=c(1:n)
train=train1[train1!=k]
m1=lm(Price~Age,data=auto[train,])
pred=predict(m1,newdat=auto[-train,])
obs=auto$Price[-train]
diff[k]=obs-pred
percdiff[k]=abs(diff[k])/obs
}
me=mean(diff)
rmse=sqrt(mean(diff**2))
mape=100*(mean(percdiff))
me # mean error
rmse # root mean square error
mape # mean absolute percent error

## Adding the squares of Age and KM to the model

auto$Age2=auto$Age^2
auto$KM2=auto$KM^2
m11=lm(Price~Age+KM,data=auto)
summary(m11)
m12=lm(Price~Age+Age2+KM+KM2,data=auto)
summary(m12)
m13=lm(Price~Age+Age2+KM,data=auto)
summary(m13)
plot(m11$res~m11$fitted)
hist(m11$res)
plot(m12$res~m12$fitted)