Using machine learning to build the model that will help to pick the location for the new oil well with the highest profit margin with analysis potential profits and risks using the Bootstrap technique.
Tools used:
pandas, numpy, sklearn, bootstrap
Conclusion:
Region 0 :
average_profit: 4094280.39
confidence_interval: -1315360.29 : 9443955.82
risk_of_losses: 7.1
Region 1 :
average_profit: 5369025.88
confidence_interval: 1145279.03 : 9707879.11
risk_of_losses: 0.9
Region 2 :
average_profit: 3537903.63
confidence_interval: -1591940.31 : 8756525.03
risk_of_losses: 10.2
The second region has the best average profit (5.37 MM USD) and the minimum risk of loss (0.9%)