This tutorial will cover how to model price elasticity using an example sales data. The aim of this tutorial is to calculate the price elasticity of each product separately using a Linear Regression. The data has been taken from Kaggle courtesy of Assert Solutions.
The below workflow:
Creates a loop to create models for each Product Code
Filters the data based on the number of records for each Product Code
Assembles features for modelling
Builds a linear regression model to find price elasticity