Lesson 6: Applied Regression Analysis (2 of 2)
January 31, 2018
Review:
- Multicollinearity
- Interaction Variables
- F-Statistic
- Exam 1 on Wed, Feb 7
- See Exam 1 Part 1 instructions below
- Review on Mon, Feb 5
Presentation:
- Applied Regression Analysis
- Dummy Variables
- Index Variables
- Demonstration with Sample Real Estate data
Assignment:
- Exam 1 Part 1
- Multiple Regression Analysis
- Select the worksheet corresponding to the last digit of your PID from this file: PuebloRealEstate_Exam1Data_ByPID
- Build a regression model to estimate selling price
- You must use 1 interaction variable
- You must use 1 or more Dummy variables; or, you can create and use an Index variable
- Prepare a 1-page summary of your model, including
- Regression Output with highlights
- y-hat equation (in equation format, not just a copy of the regression output)
- Define the variables used in the model (if interaction, how is it calculated?)
- Demonstrate how to apply the model
- What “selling price” estimate would your model produce for a home in Belmont neighborhood, 3 bedroom, 2 bath, 1800 sqft
- Think of your 1-page summary as a “poster” that explains your model
- It should be clear and easy to understand
- It should provide helpful text to explain different aspects of the model
- Be prepared to answer questions about your regression model
- You will use your model during Exam 1 and then turn it in after completion of the exam
- Exam is “open notes” (so bring anything useful) but you may only submit the 1-page summary (I won’t accept a stack of different model outputs)