Residual Analysis
Arvind Sharma
2023-09-20
# Clear the workspace
rm(list = ls()) # Clear all files from your environment
# gc() # Clear unused memory
cat("\f") # Clear the console graphics.off() # Clear all graphs1 Raw Data
x1 <- c(10,8,13,9,11,14,6,4,12,7,5)
x2 <- x1
x3 <- x1
x4 <- c(rep(x = 8, times=7), 19, rep(x = 8, times=3 ))
y1 <- c(8.04, 6.95, 7.58, 8.81, 8.33, 9.96, 7.24, 4.26, 10.84, 4.82, 5.68)
y2 <- c(9.14, 8.14, 8.74, 8.77, 9.26, 8.1, 6.13, 3.1, 9.13, 7.26, 4.74)
y3 <- c(7.46, 6.77, 12.74, 7.11, 7.81, 8.84, 6.08, 5.39, 8.15, 6.42,5.73)
y4 <- c(6.58, 5.76, 7.71, 8.84, 8.47, 7.04, 5.25, 12.5, 5.56, 7.91, 6.89)
df <- as.data.frame(cbind(y1,y2,y3,y4,x1,x2,x3,x4))2 Linear Regressions
2.1 Run the linear regressions
mod1 <- lm(data = df,
formula = y1 ~ x1)
mod2 <- lm(data = df,
formula = y2 ~ x2)
mod3 <- lm(data = df,
formula = y3 ~ x3)
mod4 <- lm(data = df,
formula = y4 ~ x4)2.2 Present the linear regressions
library(stargazer)##
## Please cite as:## Hlavac, Marek (2022). stargazer: Well-Formatted Regression and Summary Statistics Tables.## R package version 5.2.3. https://CRAN.R-project.org/package=stargazerstargazer(mod1, mod2, mod3, mod4, type = "text")##
## ====================================================================
## Dependent variable:
## ---------------------------------------
## y1 y2 y3 y4
## (1) (2) (3) (4)
## --------------------------------------------------------------------
## x1 0.500***
## (0.118)
##
## x2 0.500***
## (0.118)
##
## x3 0.500***
## (0.118)
##
## x4 0.500***
## (0.118)
##
## Constant 3.000** 3.001** 3.002** 3.002**
## (1.125) (1.125) (1.124) (1.124)
##
## --------------------------------------------------------------------
## Observations 11 11 11 11
## R2 0.667 0.666 0.666 0.667
## Adjusted R2 0.629 0.629 0.629 0.630
## Residual Std. Error (df = 9) 1.237 1.237 1.236 1.236
## F Statistic (df = 1; 9) 17.990*** 17.966*** 17.972*** 18.003***
## ====================================================================
## Note: *p<0.1; **p<0.05; ***p<0.013 Residual Anlaysis
3.1 Model 1
summary(mod1)##
## Call:
## lm(formula = y1 ~ x1, data = df)
##
## Residuals:
## Min 1Q Median 3Q Max
## -1.92127 -0.45577 -0.04136 0.70941 1.83882
##
## Coefficients:
## Estimate Std. Error t value Pr(>|t|)
## (Intercept) 3.0001 1.1247 2.667 0.02573 *
## x1 0.5001 0.1179 4.241 0.00217 **
## ---
## Signif. codes: 0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
##
## Residual standard error: 1.237 on 9 degrees of freedom
## Multiple R-squared: 0.6665, Adjusted R-squared: 0.6295
## F-statistic: 17.99 on 1 and 9 DF, p-value: 0.00217# Create a scatter plot of the raw data
plot(x = x1,
y = y1,
main = "Scatter Plot with Best-Fit Line",
xlab = "X-axis",
ylab = "Y-axis",
pch = 19)
# Add the best-fit line to the plot
abline(mod1, col = "red")
plot(mod1)
df$fitted_y1 <- fitted(mod1)3.2 Model 2
summary(mod2)##
## Call:
## lm(formula = y2 ~ x2, data = df)
##
## Residuals:
## Min 1Q Median 3Q Max
## -1.9009 -0.7609 0.1291 0.9491 1.2691
##
## Coefficients:
## Estimate Std. Error t value Pr(>|t|)
## (Intercept) 3.001 1.125 2.667 0.02576 *
## x2 0.500 0.118 4.239 0.00218 **
## ---
## Signif. codes: 0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
##
## Residual standard error: 1.237 on 9 degrees of freedom
## Multiple R-squared: 0.6662, Adjusted R-squared: 0.6292
## F-statistic: 17.97 on 1 and 9 DF, p-value: 0.002179# Create a scatter plot of the raw data
plot(x = x2, y = y2,
main = "Scatter Plot with Best-Fit Line",
xlab = "X-axis",
ylab = "Y-axis",
pch = 19)
# Add the best-fit line to the plot
abline(mod2, col = "red")
plot(mod2)
df$fitted_y2 <- fitted(mod2)Try a different specification:
3.3 Model 3
summary(mod3)##
## Call:
## lm(formula = y3 ~ x3, data = df)
##
## Residuals:
## Min 1Q Median 3Q Max
## -1.1586 -0.6146 -0.2303 0.1540 3.2411
##
## Coefficients:
## Estimate Std. Error t value Pr(>|t|)
## (Intercept) 3.0025 1.1245 2.670 0.02562 *
## x3 0.4997 0.1179 4.239 0.00218 **
## ---
## Signif. codes: 0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
##
## Residual standard error: 1.236 on 9 degrees of freedom
## Multiple R-squared: 0.6663, Adjusted R-squared: 0.6292
## F-statistic: 17.97 on 1 and 9 DF, p-value: 0.002176# Create a scatter plot of the raw data
plot(x = x3, y = y3,
main = "Scatter Plot with Best-Fit Line",
xlab = "X-axis",
ylab = "Y-axis",
pch = 19)
# Add the best-fit line to the plot
abline(mod3, col = "red")
plot(mod3)
df$fitted_y3 <- fitted(mod3)3.4 Model 4
summary(mod4)##
## Call:
## lm(formula = y4 ~ x4, data = df)
##
## Residuals:
## Min 1Q Median 3Q Max
## -1.751 -0.831 0.000 0.809 1.839
##
## Coefficients:
## Estimate Std. Error t value Pr(>|t|)
## (Intercept) 3.0017 1.1239 2.671 0.02559 *
## x4 0.4999 0.1178 4.243 0.00216 **
## ---
## Signif. codes: 0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
##
## Residual standard error: 1.236 on 9 degrees of freedom
## Multiple R-squared: 0.6667, Adjusted R-squared: 0.6297
## F-statistic: 18 on 1 and 9 DF, p-value: 0.002165# Create a scatter plot of the raw data
plot(x = x4, y = y4,
main = "Scatter Plot with Best-Fit Line",
xlab = "X-axis",
ylab = "Y-axis",
pch = 19)
# Add the best-fit line to the plot
abline(mod4, col = "red")
plot(mod4)## Warning: not plotting observations with leverage one:
## 8
df$fitted_y4 <- fitted(mod4)