- Introduction
- Exploratory Data Analysis
- Performing Multiple Linear Regression
- Bootstrap Multiple Linear Regression
- Final Model
- Conclusion & Discussion
Table of Contents
Introduction
- Data set related to homes on the Melbourne housing market
- 34,857 total observations and 21 different variables
- 8 categorical variables (e.g. Suburb, Address, Method of Sale, etc.), 13 numerical (e.g. Number of Rooms, Selling Price, Distance From Central Business District, etc.)
- Exploratory Data Analysis & MLR with Selling Price as response variable
- Best MLR model chosen from several candidate models
Exploratory Data Analysis
- Group location variable created using latitude/longitude data
- factor variable: main.group, 1 = in main cluster of houses, 0 = not in main cluster
- factor variable: main.group, 1 = in main cluster of houses, 0 = not in main cluster
## Warning: NAs introduced by coercion
Initial Full Model
| Estimate | Std. Error | t value | Pr(>|t|) | |
|---|---|---|---|---|
| (Intercept) | 341598.26372 | 35441.748430 | 9.6383017 | 0.0000000 |
| Rooms | 191050.76381 | 20835.328167 | 9.1695587 | 0.0000000 |
| Typet | -330310.57353 | 19774.823888 | -16.7035912 | 0.0000000 |
| Typeu | -397338.37437 | 17058.481520 | -23.2927165 | 0.0000000 |
| Bedroom2 | -10296.44660 | 20751.931053 | -0.4961681 | 0.6197876 |
| Bathroom | 259327.02431 | 9512.669773 | 27.2612243 | 0.0000000 |
| Car | 38405.27626 | 6011.405633 | 6.3887348 | 0.0000000 |
| Landsize | 23.36419 | 4.723378 | 4.9464991 | 0.0000008 |
| BuildingArea | 34.83513 | 11.819982 | 2.9471386 | 0.0032153 |
| main.groupTRUE | 204924.13563 | 23100.687825 | 8.8709106 | 0.0000000 |
| Distance.num | -36587.73611 | 1000.907423 | -36.5545657 | 0.0000000 |