mydata <- read.csv("~/Intro to Data Science/Finals/week 6 data-1.csv")
mydata
##     Expenditures Enrolled       RVUs    FTEs Quality.Score
## 1      114948144    25294  402703.73  954.91          0.67
## 2      116423140    42186  638251.99  949.25          0.58
## 3      119977702    23772  447029.54  952.51          0.52
## 4       19056531     2085   43337.26  199.98          0.93
## 5      246166031    67258 1579789.36 2162.15          0.96
## 6      152125186    23752  673036.55 1359.07          0.56
## 7      737556867    53781 2397334.12 5798.04          0.84
## 8      431714041    98763 2256730.04 3623.94          0.82
## 9      378230874    47986 1558835.73 3305.32          0.76
## 10     289246447    64634 1713157.92 2404.80          0.81
## 11     292001890    76714 1156318.42 1690.42          0.83
## 12      33290437    11163  161196.70  214.72          0.70
## 13      89918238    33266  550546.15  786.15          0.60
## 14     200289585    35008 1050922.34 1784.82          0.75
## 15     154264931    42984 1010128.12 1325.65          0.64
## 16     111397716    15821  372044.89  957.25          0.73
## 17      63691831    21657  485389.31  483.36          0.68
## 18     177511820    57006  838595.08 1323.09          0.83
## 19     155047333    18580 1030776.45 1326.46          0.83
## 20     421917863    40639 1357463.45 3495.57          0.82
## 21      49422291    17343  248057.53  337.61          0.76
## 22     704000406   108960 3017131.83 5345.62          0.85
## 23     231372781    48338 1665055.71 2032.83          0.75
## 24      92965171    27454  560475.02  762.67          0.89
## 25     148661984    20476  736191.93 1166.26          0.84
## 26      52500954    17125  254384.25  428.16          0.84
## 27      48990120    13781  240808.17  434.20          0.59
## 28     175601378    30571  994000.52 1474.55          0.93
## 29     627739846    65154 2707224.50 4784.79          0.88
## 30      56291987    12107  184173.46  500.96          0.74
## 31     384804579    65885 1648839.75 3444.47          0.70
## 32     211543524    57098 1102229.23 1744.00          0.90
## 33     481316889   115521 2552169.39 4003.16          0.73
## 34     123018246    30540  488432.15  753.12          0.84
## 35      17193213     4327   49293.75  177.65          0.56
## 36      30664899    13527  128738.76  283.17          0.75
## 37      19768937     7209   89148.62  206.42          0.69
## 38      55784977    17266  174289.61  586.06          0.71
## 39      37992105    14842  146174.89  348.40          0.71
## 40      39448397    11953  138345.36  373.62          0.70
## 41      49637051    25420  241419.44  497.49          0.74
## 42      28530205    12110  124162.92  260.72          0.55
## 43      30673348    11466  113732.83  298.50          0.76
## 44      25234710    11454  113222.94  265.81          0.53
## 45      49671099    16845  145258.22  413.01          0.40
## 46      22557139     8131   91710.45  217.08          0.65
## 47      15516577     4521   54406.39  204.56          0.71
## 48      47429842     8002  120720.78  426.67          0.76
## 49      43366439    13364  146786.49  406.80          0.74
## 50      20223890    10009   83916.19  202.41          0.62
## 51      18363510     6103   60862.37  188.40          0.75
## 52      47778415    22259  218827.23  410.02          0.63
## 53      45322490    22959  232476.04  366.63          0.80
## 54      41314090     7604  111419.60  464.88          0.73
## 55      41831991    10417  142963.42  378.73          0.81
## 56      20109657     6149   72473.83  229.39          0.65
## 57      50755308     7042  127018.26  517.54          0.91
## 58      69272642    24565  323225.69  703.60          0.67
## 59      40575888    14849  129274.86  343.20          0.41
## 60      20958223     2578   49777.27  207.06          0.68
## 61      25628795     7691   93237.75  277.07          0.53
## 62      44432989    16932  185326.68  329.76          0.59
## 63      33521880    12213  132282.28  352.28          0.69
## 64      46306286    14439  143826.20  307.96          0.76
## 65      15736197     3887   45836.14  169.74          0.72
## 66      91103765    22214  356917.60  947.74          0.65
## 67      29637497    11648  133160.97  288.03          0.64
## 68      32821893    11552  131678.51  332.10          0.56
## 69      28426761    11298  110997.40  288.20          0.76
## 70      37534503     7319  109734.18  457.09          0.62
## 71      35432093    11743  120563.35  352.10          0.65
## 72      82601055    28151  320705.78  746.06          0.85
## 73      64545467    27250  313899.05  546.20          0.66
## 74      28901543     6758   71855.26  268.14          0.67
## 75     671959058    54771 1865586.33 5697.77          0.81
## 76      29361928    12577  118062.13  300.97          0.89
## 77     320604335    40225  808455.56 2415.15          0.59
## 78      19790938     8265   75995.61  161.15          0.68
## 79      28382056    12188  125125.92  268.02          0.50
## 80     133789826    35570  550683.00 1239.03          0.77
## 81      11906768     1424   23581.51  137.55          0.72
## 82      19448328     6766   48223.16  170.92          0.61
## 83     150947798    37795  608182.20 1260.65          0.63
## 84     113604093    33319  406929.00  640.55          0.79
## 85      15487046     4227   44759.38  168.01          0.67
## 86      55312465    22109  256084.38  502.99          0.60
## 87      49645517    17442  242765.52  433.78          0.78
## 88     151611402    27667  556371.89 1373.80          0.63
## 89      47833729    15449  181309.06  429.29          0.76
## 90      31467898    10324  112718.98  311.40          0.68
## 91     221899340    27207  710440.86 1824.36          0.68
## 92      51656073    10054  199461.51  492.75          0.72
## 93      93746534    20601  231366.13  919.47          0.78
## 94      45093715    16176  185456.99  421.68          0.70
## 95     290852934    36549  855724.09 2271.85          0.83
## 96      16275452     2062   32058.03  185.23          0.49
## 97      23880752     8922  101135.34  228.50          0.72
## 98      30422168    10949  108488.17  300.02          0.41
## 99     179510966    33125  684679.01 1587.88          0.81
## 100     15868393     4943   55961.81  151.10          0.71
## 101    191489002    45613  738618.70 1649.62          0.55
## 102     33946305     9001   90746.40  389.07          0.82
## 103    112886022    26776  503561.98  966.04          0.81
## 104    118474189    10184  584607.15 1129.51          0.78
## 105    170396460    34609  714332.05 1315.37          0.83
## 106    242465456    31301 1212558.88 2432.32          0.79
## 107    279086160    48049 1468797.93 2317.23          0.83
## 108     90695660    10976  280721.41  811.31          0.73
## 109     33692909     1218   52387.28  290.49          0.73
## 110    281085750    56812 1387650.41 2353.20          0.81
## 111     70232710    14086  297280.10  659.61          0.72
## 112     67058602     5628  154626.03  556.60          0.78
## 113     57406032    14897  327289.34  473.52          0.69
## 114    133421055    15611  734445.95 1318.31          0.78
## 115    239806816    46403 1030474.35 2031.98          0.78
## 116     44222933     2642   90139.68  398.66          0.82
## 117     55797686     7852  167676.80  503.27          0.64
## 118     74134323    14783  337025.73  636.82          0.64
## 119    129861050    21585  480628.61 1306.36          0.58
## 120     38680530    13153  243534.20  332.89          0.76
## 121     49129643    16577  231843.71  419.97          0.91
## 122     49575746    14431  279027.99  401.68          0.79
## 123     66972157    12728  169068.75  471.70          0.73
## 124     75793328    29339  525417.05  664.01          0.86
## 125     38437460    15428  177338.98  321.46          0.86
## 126     59443879    21742  347643.62  551.92          0.71
## 127    806367625   101454 3434703.16 6658.61          0.92
## 128    785079539    40402 1844285.41 4655.55          0.92
## 129    129946379    25540  460637.39  910.46          0.72
## 130    117827082    42206  763481.71  974.07          0.53
## 131    124633496    24435  471401.75  941.42          0.60
## 132     15335594     1906   45977.13  186.63          0.70
## 133    280918530    71993 1810996.19 2094.17          0.93
## 134    142671518    29449  680826.00 1227.45          0.67
## 135   1052311021    57397 2892975.46 7518.63          0.79
## 136    452667260   100569 2390290.31 3587.36          0.76
## 137    370586067    45085 1624727.69 3107.84          0.76
## 138    294389493    68214 1836855.21 2311.60          0.85
## 139    478981007    81497 1736067.57 3542.01          0.69
## 140     34827530    10631  150177.82  208.10          0.64
## 141     94258566    34222  568984.13  788.41          0.49
## 142    204873437    32113  945113.43 1598.94          0.73
## 143    164690465    45838 1157782.51 1363.49          0.65
## 144    105635716    13241  338120.18  811.58          0.63
## 145     73110154    21077  512124.61  501.03          0.73
## 146    178424383    59407  989358.63 1164.10          0.84
## 147    168267964    20236 1071997.55 1297.82          0.85
## 148    453595967    41256 1453868.97 3361.97          0.73
## 149     55868770    17757  264847.07  338.83          0.83
## 150    672113787   116389 3093666.05 5004.26          0.79
## 151    263617995    54261 1692788.53 2050.02          0.74
## 152     88213119    25920  587833.28  725.47          0.91
## 153    154460753    21819  723014.94 1105.41          0.79
## 154     54996100    16242  261201.56  395.37          0.86
## 155     48828341    12078  252941.14  394.23          0.94
## 156    187119684    30279 1015301.82 1422.28          0.82
## 157    674563921    66212 2673082.99 4685.47          0.74
## 158     59942400    11141  213605.00  483.70          0.83
## 159    417756027    72259 1852559.13 3478.57          0.81
## 160    214429435    58625 1290205.03 1671.86          0.85
## 161    522108466   116298 2616782.68 3879.58          0.79
## 162    122543052    29016  479062.73  720.95          0.77
## 163     18386529     4199   56064.49  156.28          0.59
## 164     33333082    13781  133997.55  270.14          0.83
## 165     20523439     7050   91612.91  176.79          0.76
## 166     59426076    17134  172765.34  532.25          0.57
## 167     40355791    13909  153028.08  351.94          0.78
## 168     41684323    12776  147494.34  373.30          0.67
## 169     53590324    23901  247909.39  463.56          0.78
## 170     29439049    11834  134265.66  249.42          0.71
## 171     30939512    10869  121982.43  297.32          0.82
## 172     26985594    11279  122499.26  256.12          0.64
## 173     51174054    16994  185507.03  394.24          0.39
## 174     23753605     7853   94789.14  210.53          0.59
## 175     15659058     4749   63977.31  187.68          0.72
## 176     50888100     7850  136429.27  412.04          0.85
## 177     43768308    12351  154733.89  350.68          0.81
## 178     23082323     9982   90140.88  241.51          0.66
## 179     18261275     5937   67479.03  186.47          0.66
## 180     49348318    19519  227044.07  394.49          0.68
## 181     43254472    24654  258675.34  330.13          0.85
## 182     43335191     7259  128745.31  398.97          0.70
## 183     42773074    10141  165737.75  374.74          0.67
## 184     21323162     6142   62422.39  193.86          0.49
## 185     56032849     6812  143776.97  459.01          0.63
## 186     70268334    24571  344199.65  657.36          0.69
## 187     42586104    12020  139945.55  320.77          0.31
## 188     21902259     2662   55472.38  190.79          0.74
## 189     27534164     7644   99528.47  271.41          0.68
## 190     47356861    16513  192851.20  307.29          0.60
## 191     33675604    11456  146346.45  316.67          0.64
## 192     49966638    14648  168293.14  277.44          0.78
## 193     15484896     3810   47317.01  150.47          0.70
## 194     95034213    17811  359659.92  811.18          0.59
## 195     30276033    11075  129988.91  281.42          0.76
## 196     33343818    11080  136237.85  324.82          0.48
## 197     28896477    11666  112823.36  265.84          0.79
## 198     40787554     7357  115452.21  427.65          0.85
## 199     38388629     8548  109251.92  330.95          0.61
## 200     80916337    27326  361224.99  685.37          0.74
## 201     68113499    26144  330031.76  518.75          0.66
## 202     29372038     7087   64318.29  267.16          0.73
## 203    651743770    50687 1601793.92 5048.47          0.88
## 204     29696092    12393  127030.34  276.22          0.80
## 205    348797885    39078  863863.99 2340.06          0.58
## 206     20663099     8438   82060.19  164.62          0.58
## 207     30201767    11945  144498.15  272.21          0.54
## 208    150320044    37600  620445.23 1284.54          0.76
## 209     12085971     1445   23218.01  120.30          0.79
## 210     20375822     6716   58518.34  165.32          0.68
## 211    160608494    37162  641388.93 1228.19          0.58
## 212     96365310    33829  415452.70  581.08          0.68
## 213     14780257     4145   53073.19  145.87          0.67
## 214     57948488    20244  262939.04  454.48          0.54
## 215     50683600    17047  256896.61  396.00          0.72
## 216    148969823    28338  558736.60 1130.04          0.63
## 217     49950740    13792  189081.27  420.35          0.80
## 218     32146051    10634   99266.92  288.41          0.83
## 219    235165404    26731  740702.89 1684.47          0.76
## 220     49943851     9517  195731.34  444.26          0.70
## 221     93550306    20120  235349.05  839.14          0.65
## 222     46805669    16892  213023.68  408.52          0.61
## 223    322738262    37171  903695.93 2031.06          0.87
## 224     17519828     2423   34588.14  184.65          0.60
## 225     25110314     8647   92861.20  213.82          0.57
## 226     32623104    10319  118254.98  293.35          0.48
## 227    191736477    34861  721944.14 1549.64          0.84
## 228     16646964     5166   60638.99  146.90          0.66
## 229    223513993    47105  869628.09 1659.27          0.58
## 230     35964730     8748   97346.03  361.02          0.83
## 231    121800528    26994  519196.24  965.89          0.70
## 232    121524734    10564  564985.07 1078.21          0.84
## 233    182373869    34255  747807.29 1319.79          0.79
## 234    256575567    31548 1331724.66 2282.88          0.76
## 235    288406519    48251 1483892.38 2229.13          0.76
## 236     95104995    10983  301374.21  806.66          0.67
## 237     36287531     1602   49394.58  280.38          0.61
## 238    287374111    56569 1358605.37 2252.70          0.71
## 239     73206957    13163  303746.49  615.57          0.77
## 240     63328607     5319  153975.67  531.35          0.81
## 241     59419192    14653  332710.38  427.31          0.77
## 242    144359005    16182  783710.24 1265.67          0.67
## 243    246761080    45429 1075503.19 1973.93          0.87
## 244     49838003     2700   99966.78  404.84          0.87
## 245     59641487     8344  186116.14  494.66          0.66
## 246     78802547    14439  353629.69  643.62          0.66
## 247    141710583    20243  525514.30 1281.47          0.80
## 248     44037424    13693  244664.82  316.48          0.67
## 249     50511046    16514  213393.96  349.72          0.87
## 250     49336614    14441  294497.96  401.89          0.79
## 251     61325036    12573  191410.10  462.72          0.69
## 252     84252197    29155  520728.07  642.60          0.83
## 253     43864242    15582  178586.90  312.64          0.74
## 254     61412502    21966  349811.35  548.66          0.68
## 255    818656771   100584 3574006.15 6613.28          0.89
## 256   1301993928    50927 2822798.99 7264.44          0.80
## 257     94047315    25065  490004.41  877.76          0.68
## 258     78707019    37484  685670.00  882.74          0.61
## 259     99843160    23433  464193.99  930.94          0.57
## 260     10411614     2146   52575.69  168.81          0.55
## 261    210852507    69862 1497851.52 2074.33          0.93
## 262    107067124    31989  670977.65 1365.40          0.87
## 263    782762374    57259 2694416.86 7410.52          0.82
## 264    337731158   101429 2209837.83 3334.43          0.78
## 265    282567119    44940 1330621.99 3016.47          0.71
## 266    229521482    70900 1782559.31 2330.10          0.83
## 267    380317663    82717 1649419.95 3447.24          0.64
## 268     26083915    11517  146801.47  191.09          0.76
## 269     69635722    32476  531543.72  779.58          0.42
## 270    150516975    32330  838022.94 1538.72          0.66
## 271    123626592    42568  955567.97 1324.11          0.67
## 272     76813305    13182  245494.03  714.26          0.60
## 273     46084228    21118  432508.24  482.78          0.71
## 274    140235269    61512  840078.05 1169.56          0.77
## 275    122357396    22131  992598.16 1285.99          0.78
## 276    360490554    52361 1519461.14 3440.47          0.67
## 277     37884197    17669  254492.22  318.90          0.78
## 278    524079263   119076 2860646.31 4868.98          0.74
## 279    186727705    55480 1469704.84 1985.09          0.57
## 280     63568011    25112  494032.79  670.45          0.90
## 281    110928482    23827  699243.04 1034.51          0.77
## 282     39233373    16640  260642.92  397.81          0.87
## 283     35323954    12072  228236.18  345.64          0.91
## 284    133895187    30483  931018.64 1341.27          0.78
## 285    529484041    67509 2382358.81 4505.88          0.72
## 286     43736668    10878  180151.59  499.05          0.65
## 287    328821735    70252 1773661.16 3362.13          0.78
## 288    160042102    59168 1061118.57 1671.68          0.78
## 289    389431356   119850 2296382.01 3842.06          0.78
## 290     88037818    28051  448635.12  683.56          0.68
## 291     12643654     4176   62945.84  138.28          0.64
## 292     24252878    13885  128449.03  247.60          0.89
## 293     13805046     7456   88515.40  161.19          0.81
## 294     42703747    16813  157896.70  484.02          0.63
## 295     29590277    14476  138303.63  322.78          0.75
## 296     29827614    12618  163418.40  359.91          0.78
## 297     41077626    24956  250186.86  480.69          0.77
## 298     20069865    11401  122452.70  254.62          0.73
## 299     21702658    10566  104959.54  271.87          0.77
## 300     19829246    11045  110138.68  246.52          0.79
## 301     35631699    17212  174017.19  383.20          0.45
## 302     17309855     7802   88910.56  193.31          0.62
## 303     12232590     5041   58002.30  171.03          0.75
## 304     38724750     7633  126546.43  444.72          0.78
## 305     28129131    12915  134342.38  296.44          0.89
## 306     16982095     9906   96588.69  211.67          0.61
## 307     13481673     5633   55652.31  163.42          0.55
## 308     40115495    20690  219136.01  369.63          0.69
## 309     28374756    24649  230505.80  328.96          0.89
## 310     35739680     7267  114423.35  406.87          0.59
## 311     30151930    10063  145334.13  385.38          0.68
## 312     16189811     5999   67858.67  202.65          0.44
## 313     43005541     7012  129690.83  430.12          0.59
## 314     54299717    24207  315507.42  630.25          0.70
## 315     29156276    11793  133477.57  305.89          0.31
## 316     18592043     2500   44197.16  185.50          0.82
## 317     20081127     7446   88526.54  248.49          0.69
## 318     32138620    16419  170237.89  306.84          0.58
## 319     22877488    11449  127905.57  301.17          0.68
## 320     33859690    14823  144092.99  265.25          0.91
## 321     10180284     3685   52157.86  125.00          0.75
## 322     70781594    17746  320445.13  814.42          0.66
## 323     20969209    10753  109821.43  272.34          0.70
## 324     23225910    10673  117906.07  288.43          0.50
## 325     19876545    11915  106202.23  246.63          0.77
## 326     29423436     7619  107960.68  398.87          0.75
## 327     27852806     7943   87815.68  315.10          0.66
## 328     58803092    27118  331616.59  648.77          0.69
## 329     48609297    25552  310370.02  497.67          0.58
## 330     21187801     7384   74864.60  242.31          0.74
## 331    463611180    52490 1426871.64 4665.43          0.88
## 332     20926931    12575  128328.62  261.39          0.75
## 333    248413335    39215  810171.13 2261.38          0.48
## 334     16339169     8284   65142.62  170.92          0.60
## 335     22953113    12253  134131.67  269.36          0.64
## 336    111205662    38545  598097.42 1297.28          0.65
## 337      7839563     1390   23391.25  116.29          0.86
## 338     16286538     6901   47320.66  135.83          0.58
## 339    119293449    37124  623674.43 1186.71          0.63
## 340     68360435    36696  385697.33  578.16          0.59
## 341     10836186     4120   47847.89  135.89          0.71
## 342     40189939    20393  243788.74  441.88          0.55
## 343     35401236    17116  223210.61  343.91          0.72
## 344    107506235    28789  479689.96 1146.34          0.70
## 345     34917728    15227  159420.23  406.61          0.75
## 346     22436001     9892   98620.22  264.85          0.75
## 347    164036058    26372  666386.35 1580.19          0.71
## 348     33399114     9693  176535.27  382.26          0.71
## 349     70201713    19743  197356.55  799.58          0.65
## 350     32754540    17299  207190.31  384.97          0.50
## 351    206886756    37266  783489.55 1870.42          0.81
## 352     13779195     2232   28972.31  162.39          0.55
## 353     17940731     8509   86070.80  205.99          0.44
## 354     21996524    10731  111598.06  279.85          0.40
## 355    145052995    36714  651147.15 1554.25          0.75
## 356     11599674     5117   53306.14  139.95          0.70
## 357    157480675    48077  774026.56 1467.97          0.57
## 358     25699503     9269   94087.39  338.05          0.78
## 359     87606611    26811  460717.48  931.23          0.77
## 360     88268292    10638  584343.14 1032.31          0.85
## 361    137687522    34157  659398.59 1331.56          0.77
## 362    209778567    28452 1207717.46 2291.80          0.77
## 363    217234362    54088 1468947.94 2256.08          0.73
## 364     72748524    12578  272805.82  807.40          0.67
## 365     27017111     2495   45743.93  273.63          0.65
## 366    211706640    55780 1186891.23 2197.67          0.65
## 367     53091253    12886  283437.31  602.52          0.73
## 368     50101230     5085  137424.07  548.62          0.72
## 369     44076052    14108  294641.54  457.95          0.75
## 370    114704162    17808  758965.24 1361.03          0.64
## 371    180743712    47608  997600.45 1919.63          0.89
## 372     41248792     2627   86193.90  436.02          0.91
## 373     43070966     7366  171945.87  492.47          0.74
## 374     57893841    14046  333834.43  632.80          0.68
## 375    115901469    20703  482809.71 1259.61          0.74
## 376     30655008    12915  225910.92  301.84          0.79
## 377     33484177    16302  181430.97  372.68          0.88
## 378     36840773    14143  311830.18  414.35          0.73
## 379     44320061    12909  165571.09  448.58          0.73
## 380     62746031    29229  468078.61  652.88          0.75
## 381     27700261    15128  159782.94  295.72          0.68
## 382     42906055    20627  286767.83  523.77          0.53
## 383    613026612   102325 3313522.61 6392.68          0.82
## 384    973911640    50913 2384670.02 6666.90          0.71
str(mydata)
## 'data.frame':    384 obs. of  5 variables:
##  $ Expenditures : num  1.15e+08 1.16e+08 1.20e+08 1.91e+07 2.46e+08 ...
##  $ Enrolled     : num  25294 42186 23772 2085 67258 ...
##  $ RVUs         : num  402704 638252 447030 43337 1579789 ...
##  $ FTEs         : num  955 949 953 200 2162 ...
##  $ Quality.Score: num  0.67 0.58 0.52 0.93 0.96 0.56 0.84 0.82 0.76 0.81 ...
head(mydata)
##   Expenditures Enrolled       RVUs    FTEs Quality.Score
## 1    114948144    25294  402703.73  954.91          0.67
## 2    116423140    42186  638251.99  949.25          0.58
## 3    119977702    23772  447029.54  952.51          0.52
## 4     19056531     2085   43337.26  199.98          0.93
## 5    246166031    67258 1579789.36 2162.15          0.96
## 6    152125186    23752  673036.55 1359.07          0.56
mean_exp <- mean(mydata$Expenditures)

sd_exp <- sd(mydata$Expenditures)

mydata_exp_out <- (mydata$Expenditures - mean_exp)/ sd_exp

sum(abs((mydata_exp_out)>3))
## [1] 13
#Outliers absent

mean_rvus <- mean(mydata$RVUs)

sd_rvus <- sd(mydata$RVUs)

mydata_rvus_out <- (mydata$RVUs - mean_rvus)/ sd_rvus

sum(abs((mydata_rvus_out)>3))
## [1] 12
hist(x = mydata$Expenditures, main = "Expenditure")

hist(x = mydata$RVUs, main = "RVU")

cor(mydata)
##               Expenditures  Enrolled      RVUs      FTEs Quality.Score
## Expenditures     1.0000000 0.7707756 0.9217239 0.9796506     0.2749501
## Enrolled         0.7707756 1.0000000 0.9152024 0.8148491     0.2526991
## RVUs             0.9217239 0.9152024 1.0000000 0.9504093     0.3075742
## FTEs             0.9796506 0.8148491 0.9504093 1.0000000     0.2769058
## Quality.Score    0.2749501 0.2526991 0.3075742 0.2769058     1.0000000
plot(x = mydata$RVUs, y = mydata$Expenditures, xlab = "RVUS", ylab = "Expenditures")

#Linear regression

reg <- lm(mydata$Expenditures ~ mydata$RVUs)
summary(reg)
## 
## Call:
## lm(formula = mydata$Expenditures ~ mydata$RVUs)
## 
## Residuals:
##        Min         1Q     Median         3Q        Max 
## -185723026  -14097620    2813431   11919781  642218316 
## 
## Coefficients:
##               Estimate Std. Error t value Pr(>|t|)    
## (Intercept) -3.785e+06  4.413e+06  -0.858    0.392    
## mydata$RVUs  2.351e+02  5.061e+00  46.449   <2e-16 ***
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 67350000 on 382 degrees of freedom
## Multiple R-squared:  0.8496, Adjusted R-squared:  0.8492 
## F-statistic:  2157 on 1 and 382 DF,  p-value: < 2.2e-16
options(scipen = 999 )
summary(reg)
## 
## Call:
## lm(formula = mydata$Expenditures ~ mydata$RVUs)
## 
## Residuals:
##        Min         1Q     Median         3Q        Max 
## -185723026  -14097620    2813431   11919781  642218316 
## 
## Coefficients:
##                 Estimate   Std. Error t value            Pr(>|t|)    
## (Intercept) -3785072.158  4412905.480  -0.858               0.392    
## mydata$RVUs      235.072        5.061  46.449 <0.0000000000000002 ***
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 67350000 on 382 degrees of freedom
## Multiple R-squared:  0.8496, Adjusted R-squared:  0.8492 
## F-statistic:  2157 on 1 and 382 DF,  p-value: < 0.00000000000000022
#1 unit increase in RVUs will enhance the expenditure by 235.07
#When RVU is 0, expenditure is expected to be -3785000 (unrealistic)
#T value = 46.449, and p value = 2e-16, suggesting a positive correlation.
#The model explained 84.96% variance in Expenditures

plot(reg)

#The Gauss Markow Assumptions did not hold because the regression is only validating two out of the 4 assumptions. We saw how the residuals does not fit well in linear line and that we have some extreme values at the distance.


#Transformed Linear model

  reg2 <- lm(log(mydata$Expenditures) ~ mydata$RVUs)
summary(reg2)
## 
## Call:
## lm(formula = log(mydata$Expenditures) ~ mydata$RVUs)
## 
## Residuals:
##      Min       1Q   Median       3Q      Max 
## -1.59439 -0.29504  0.06135  0.35333  1.20871 
## 
## Coefficients:
##                   Estimate     Std. Error t value            Pr(>|t|)    
## (Intercept) 17.29584389074  0.03325414655  520.11 <0.0000000000000002 ***
## mydata$RVUs  0.00000134911  0.00000003814   35.38 <0.0000000000000002 ***
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 0.5076 on 382 degrees of freedom
## Multiple R-squared:  0.7661, Adjusted R-squared:  0.7655 
## F-statistic:  1251 on 1 and 382 DF,  p-value: < 0.00000000000000022
plot(x = mydata$RVUs, y = log (mydata$Expenditures), xlab = "RVUS", ylab = "log of Expenditures")

plot(reg2)

1.
## [1] 1
#The model explained 76.61% varience in Expenditure, which is lower than the linear model.
#A 1 unit increace in RVUS causes a 0.000134911 % increase in expenditure. Using log-level.

2.
## [1] 2
log_log_reg <- lm(formula = log(mydata$Expenditures) ~ log(mydata$RVUs))

summary(log_log_reg)
## 
## Call:
## lm(formula = log(mydata$Expenditures) ~ log(mydata$RVUs))
## 
## Residuals:
##      Min       1Q   Median       3Q      Max 
## -0.74657 -0.19864 -0.02431  0.18642  0.93551 
## 
## Coefficients:
##                  Estimate Std. Error t value            Pr(>|t|)    
## (Intercept)       6.91487    0.16621   41.60 <0.0000000000000002 ***
## log(mydata$RVUs)  0.88444    0.01317   67.17 <0.0000000000000002 ***
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 0.2932 on 382 degrees of freedom
## Multiple R-squared:  0.9219, Adjusted R-squared:  0.9217 
## F-statistic:  4512 on 1 and 382 DF,  p-value: < 0.00000000000000022
plot(log_log_reg)