Lesson 10: Applied Regression Modeling (1 of 2)
February 22, 2022
Review:
- MLB Baseball model
- 2013 MLB Team statistics
- Walk through model development
- Here’s a video where I do the same modeling work in Excel
- Next video assignment on Thursday, due the following Tuesday
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
- Estimate selling price for a 1500 sqft, 3 bd, 2 ba home
Assignment:
- Use this larger Pueblo real estate data set
- Build a regression model to estimate selling price
- You must use 1 interaction variable
- Experiment with multiple combinations of variables to find the best model, maximizing R^2 and the F Statistic
- Use your regression model to estimate selling prices for these 4 hypothetical properties
- 3 BR, 2 BA, 1600 SqFt
- 4 BR, 3 BA, 2400 SqFt
- 3 BR, 1 BA, 1200 SqFt
- 2 BR, 1 BA, 800 SqFt