## Lesson 9: Applied Regression Modeling (1 of 2)

Review:

- Covid classroom policies
- Masks mandatory and worn over your nose
- Seating assignments – check with Max

- Grades updated
- Baseball model
- 2013 MLB Team statistics
- Walk through model development

Presentation:

- Applied Regression Analysis
- Demonstrate with Sample Real Estate data
- Multicollinearity definition
- Interaction Variables
- combine separate variables mathematically
- add, multiply, etc
- another way to avoid problems with multicollinearity

- Demonstration with Sample Real Estate data
- Estimate selling price for a 1500 sqft, 3 bd, 2 ba home

Assignment:

- Build a regression model to estimate Real Estate selling prices
- Use this data set Pueblo RE East Side
- Use an interaction variable to mitigate multicollinearity
- Use your regression model to estimate selling prices for these 4 properties
- Belmont 3 BR, 2 BA, 1600 SqFt
- Belmont 4 BR, 3 BA, 2400 SqFt
- East Side 3 BR, 1 BA, 1200 SqFt
- East Side 2 BR, 1 BA, 800 SqFt

- Add results to your Portfolio
- Regression output
- y-hat equation
- 4 property Selling Price estimates