Lesson 9: Applied Regression Modeling (1 of 2)

September 22, 2020

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