** Tire Ratings **

##Step 1: Import data and summary data

library(readxl)
library(Hmisc)
## 
## Attaching package: 'Hmisc'
## The following objects are masked from 'package:base':
## 
##     format.pval, units
library(pscl)
## Classes and Methods for R originally developed in the
## Political Science Computational Laboratory
## Department of Political Science
## Stanford University (2002-2015),
## by and under the direction of Simon Jackman.
## hurdle and zeroinfl functions by Achim Zeileis.
library(pROC)
## Type 'citation("pROC")' for a citation.
## 
## Attaching package: 'pROC'
## The following objects are masked from 'package:stats':
## 
##     cov, smooth, var
df <- read_excel("TireRatings.xlsx")
df
## # A tibble: 68 × 5
##    Tire                                        Wet Noise Buy_Again Purchase
##    <chr>                                     <dbl> <dbl>     <dbl>    <dbl>
##  1 BFGoodrich g-Force Super Sport A/S          8     7.2       6.1        0
##  2 BFGoodrich g-Force Super Sport A/S H&V      8     7.2       6.6        1
##  3 BFGoodrich g-Force T/A KDWS                 7.6   7.5       6.9        1
##  4 Bridgestone B381                            6.6   5.4       6.6        0
##  5 Bridgestone Insignia SE200                  5.8   6.3       4          0
##  6 Bridgestone Insignia SE200-02               6.3   5.7       4.5        0
##  7 Bridgestone Potenza G 019 Grid              7.7   5.2       5          0
##  8 Bridgestone Potenza RE92                    5     6.2       2.5        0
##  9 Bridgestone Potenza RE92A                   5.6   6.4       2.7        0
## 10 Bridgestone Potenza RE960AS Pole Position   8.8   8.5       8.1        1
## # ℹ 58 more rows
head(df)
## # A tibble: 6 × 5
##   Tire                                     Wet Noise Buy_Again Purchase
##   <chr>                                  <dbl> <dbl>     <dbl>    <dbl>
## 1 BFGoodrich g-Force Super Sport A/S       8     7.2       6.1        0
## 2 BFGoodrich g-Force Super Sport A/S H&V   8     7.2       6.6        1
## 3 BFGoodrich g-Force T/A KDWS              7.6   7.5       6.9        1
## 4 Bridgestone B381                         6.6   5.4       6.6        0
## 5 Bridgestone Insignia SE200               5.8   6.3       4          0
## 6 Bridgestone Insignia SE200-02            6.3   5.7       4.5        0
summary(df)
##      Tire                Wet            Noise         Buy_Again    
##  Length:68          Min.   :4.300   Min.   :3.600   Min.   :1.400  
##  Class :character   1st Qu.:6.450   1st Qu.:6.000   1st Qu.:3.850  
##  Mode  :character   Median :7.750   Median :7.100   Median :6.150  
##                     Mean   :7.315   Mean   :6.903   Mean   :5.657  
##                     3rd Qu.:8.225   3rd Qu.:7.925   3rd Qu.:7.400  
##                     Max.   :9.200   Max.   :8.900   Max.   :8.900  
##     Purchase     
##  Min.   :0.0000  
##  1st Qu.:0.0000  
##  Median :0.0000  
##  Mean   :0.4412  
##  3rd Qu.:1.0000  
##  Max.   :1.0000
coll_df <- subset(df, select = -c(Buy_Again))
coll_df
## # A tibble: 68 × 4
##    Tire                                        Wet Noise Purchase
##    <chr>                                     <dbl> <dbl>    <dbl>
##  1 BFGoodrich g-Force Super Sport A/S          8     7.2        0
##  2 BFGoodrich g-Force Super Sport A/S H&V      8     7.2        1
##  3 BFGoodrich g-Force T/A KDWS                 7.6   7.5        1
##  4 Bridgestone B381                            6.6   5.4        0
##  5 Bridgestone Insignia SE200                  5.8   6.3        0
##  6 Bridgestone Insignia SE200-02               6.3   5.7        0
##  7 Bridgestone Potenza G 019 Grid              7.7   5.2        0
##  8 Bridgestone Potenza RE92                    5     6.2        0
##  9 Bridgestone Potenza RE92A                   5.6   6.4        0
## 10 Bridgestone Potenza RE960AS Pole Position   8.8   8.5        1
## # ℹ 58 more rows
head(coll_df)
## # A tibble: 6 × 4
##   Tire                                     Wet Noise Purchase
##   <chr>                                  <dbl> <dbl>    <dbl>
## 1 BFGoodrich g-Force Super Sport A/S       8     7.2        0
## 2 BFGoodrich g-Force Super Sport A/S H&V   8     7.2        1
## 3 BFGoodrich g-Force T/A KDWS              7.6   7.5        1
## 4 Bridgestone B381                         6.6   5.4        0
## 5 Bridgestone Insignia SE200               5.8   6.3        0
## 6 Bridgestone Insignia SE200-02            6.3   5.7        0
summary(coll_df)
##      Tire                Wet            Noise          Purchase     
##  Length:68          Min.   :4.300   Min.   :3.600   Min.   :0.0000  
##  Class :character   1st Qu.:6.450   1st Qu.:6.000   1st Qu.:0.0000  
##  Mode  :character   Median :7.750   Median :7.100   Median :0.0000  
##                     Mean   :7.315   Mean   :6.903   Mean   :0.4412  
##                     3rd Qu.:8.225   3rd Qu.:7.925   3rd Qu.:1.0000  
##                     Max.   :9.200   Max.   :8.900   Max.   :1.0000

###Step2: Create Model and Null-Model

model <- glm(Purchase ~ Wet + Noise, data = coll_df, family = binomial)
model
## 
## Call:  glm(formula = Purchase ~ Wet + Noise, family = binomial, data = coll_df)
## 
## Coefficients:
## (Intercept)          Wet        Noise  
##     -39.498        3.374        1.816  
## 
## Degrees of Freedom: 67 Total (i.e. Null);  65 Residual
## Null Deviance:       93.32 
## Residual Deviance: 27.53     AIC: 33.53
summary(model)
## 
## Call:
## glm(formula = Purchase ~ Wet + Noise, family = binomial, data = coll_df)
## 
## Coefficients:
##             Estimate Std. Error z value Pr(>|z|)   
## (Intercept) -39.4982    12.4779  -3.165  0.00155 **
## Wet           3.3745     1.2641   2.670  0.00760 **
## Noise         1.8163     0.8312   2.185  0.02887 * 
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## (Dispersion parameter for binomial family taken to be 1)
## 
##     Null deviance: 93.325  on 67  degrees of freedom
## Residual deviance: 27.530  on 65  degrees of freedom
## AIC: 33.53
## 
## Number of Fisher Scoring iterations: 8
null_model <- glm(Purchase ~ 1, data = coll_df, family = binomial)

###Step 3: Anova test

anova(null_model, model, test = "Chisq")
## Analysis of Deviance Table
## 
## Model 1: Purchase ~ 1
## Model 2: Purchase ~ Wet + Noise
##   Resid. Df Resid. Dev Df Deviance  Pr(>Chi)    
## 1        67     93.325                          
## 2        65     27.530  2   65.795 5.162e-15 ***
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
pR2(model)
## fitting null model for pseudo-r2
##         llh     llhNull          G2    McFadden        r2ML        r2CU 
## -13.7649516 -46.6623284  65.7947536   0.7050093   0.6199946   0.8305269
roc_curve <- roc(coll_df$Purchase, fitted(model))
## Setting levels: control = 0, case = 1
## Setting direction: controls < cases
plot(roc_curve)

auc(roc_curve)
## Area under the curve: 0.9741
new_data1 <- data.frame(Wet = 8, Noise = 8, Purchase = 0) #do not purchase again 
new_data2 <- data.frame(Wet = 8, Noise = 8, Purchase = 1) #purchase again 
new_data3 <- data.frame(Wet = 7, Noise = 7, Purchase = 1)
prob1 <- predict(model, newdata = new_data1, type = "response")
prob1
##         1 
## 0.8836964
prob1 * 100
##        1 
## 88.36964
prob2 <- predict(model, newdata = new_data2, type = "response")
prob2
##         1 
## 0.8836964
prob3 <- predict(model, newdata = new_data3, type = "response")
prob3
##          1 
## 0.04058753
prob3 * 100
##        1 
## 4.058753