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Q2. Carefully explain the diferences between the KNN classifer and KNN regression methods.

KNN classifer assigns the value to the point by evaluating in function of the neighbors. The point assumes the value with the higher probabilty making the values of KNN cl;assifier qulitative. KNN regression methods assigns the value that has the greater probability tp the point. Averages the value of the k-neighbors and assigns the value to the average point making values quantitative.

library(MASS)
auto <- read.csv("Auto.csv", na.strings = "?")
auto <- na.omit(auto)
str(auto)
## 'data.frame':    392 obs. of  9 variables:
##  $ mpg         : num  18 15 18 16 17 15 14 14 14 15 ...
##  $ cylinders   : int  8 8 8 8 8 8 8 8 8 8 ...
##  $ displacement: num  307 350 318 304 302 429 454 440 455 390 ...
##  $ horsepower  : int  130 165 150 150 140 198 220 215 225 190 ...
##  $ weight      : int  3504 3693 3436 3433 3449 4341 4354 4312 4425 3850 ...
##  $ acceleration: num  12 11.5 11 12 10.5 10 9 8.5 10 8.5 ...
##  $ year        : int  70 70 70 70 70 70 70 70 70 70 ...
##  $ origin      : int  1 1 1 1 1 1 1 1 1 1 ...
##  $ name        : chr  "chevrolet chevelle malibu" "buick skylark 320" "plymouth satellite" "amc rebel sst" ...
##  - attr(*, "na.action")= 'omit' Named int [1:5] 33 127 331 337 355
##   ..- attr(*, "names")= chr [1:5] "33" "127" "331" "337" ...
plot(auto)

Auto_new <- auto[,-c(9)]
cor(Auto_new)
##                     mpg  cylinders displacement horsepower     weight
## mpg           1.0000000 -0.7776175   -0.8051269 -0.7784268 -0.8322442
## cylinders    -0.7776175  1.0000000    0.9508233  0.8429834  0.8975273
## displacement -0.8051269  0.9508233    1.0000000  0.8972570  0.9329944
## horsepower   -0.7784268  0.8429834    0.8972570  1.0000000  0.8645377
## weight       -0.8322442  0.8975273    0.9329944  0.8645377  1.0000000
## acceleration  0.4233285 -0.5046834   -0.5438005 -0.6891955 -0.4168392
## year          0.5805410 -0.3456474   -0.3698552 -0.4163615 -0.3091199
## origin        0.5652088 -0.5689316   -0.6145351 -0.4551715 -0.5850054
##              acceleration       year     origin
## mpg             0.4233285  0.5805410  0.5652088
## cylinders      -0.5046834 -0.3456474 -0.5689316
## displacement   -0.5438005 -0.3698552 -0.6145351
## horsepower     -0.6891955 -0.4163615 -0.4551715
## weight         -0.4168392 -0.3091199 -0.5850054
## acceleration    1.0000000  0.2903161  0.2127458
## year            0.2903161  1.0000000  0.1815277
## origin          0.2127458  0.1815277  1.0000000
lm_fit<- lm(mpg ~ ., data = Auto_new)
summary(lm_fit)
## 
## Call:
## lm(formula = mpg ~ ., data = Auto_new)
## 
## Residuals:
##     Min      1Q  Median      3Q     Max 
## -9.5903 -2.1565 -0.1169  1.8690 13.0604 
## 
## Coefficients:
##                Estimate Std. Error t value Pr(>|t|)    
## (Intercept)  -17.218435   4.644294  -3.707  0.00024 ***
## cylinders     -0.493376   0.323282  -1.526  0.12780    
## displacement   0.019896   0.007515   2.647  0.00844 ** 
## horsepower    -0.016951   0.013787  -1.230  0.21963    
## weight        -0.006474   0.000652  -9.929  < 2e-16 ***
## acceleration   0.080576   0.098845   0.815  0.41548    
## year           0.750773   0.050973  14.729  < 2e-16 ***
## origin         1.426141   0.278136   5.127 4.67e-07 ***
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 3.328 on 384 degrees of freedom
## Multiple R-squared:  0.8215, Adjusted R-squared:  0.8182 
## F-statistic: 252.4 on 7 and 384 DF,  p-value: < 2.2e-16
  1. Is there a relationship between the predictors and the response?
  1. Which predictors appear to have a statistically significant relationship to the response?
  1. What does the coefficient for the year variable suggest?
par (mfrow = c(2, 2))
plot(lm_fit)

summary(lm(mpg ~ .:., data = Auto_new))
## 
## Call:
## lm(formula = mpg ~ .:., data = Auto_new)
## 
## Residuals:
##     Min      1Q  Median      3Q     Max 
## -7.6303 -1.4481  0.0596  1.2739 11.1386 
## 
## Coefficients:
##                             Estimate Std. Error t value Pr(>|t|)   
## (Intercept)                3.548e+01  5.314e+01   0.668  0.50475   
## cylinders                  6.989e+00  8.248e+00   0.847  0.39738   
## displacement              -4.785e-01  1.894e-01  -2.527  0.01192 * 
## horsepower                 5.034e-01  3.470e-01   1.451  0.14769   
## weight                     4.133e-03  1.759e-02   0.235  0.81442   
## acceleration              -5.859e+00  2.174e+00  -2.696  0.00735 **
## year                       6.974e-01  6.097e-01   1.144  0.25340   
## origin                    -2.090e+01  7.097e+00  -2.944  0.00345 **
## cylinders:displacement    -3.383e-03  6.455e-03  -0.524  0.60051   
## cylinders:horsepower       1.161e-02  2.420e-02   0.480  0.63157   
## cylinders:weight           3.575e-04  8.955e-04   0.399  0.69000   
## cylinders:acceleration     2.779e-01  1.664e-01   1.670  0.09584 . 
## cylinders:year            -1.741e-01  9.714e-02  -1.793  0.07389 . 
## cylinders:origin           4.022e-01  4.926e-01   0.816  0.41482   
## displacement:horsepower   -8.491e-05  2.885e-04  -0.294  0.76867   
## displacement:weight        2.472e-05  1.470e-05   1.682  0.09342 . 
## displacement:acceleration -3.479e-03  3.342e-03  -1.041  0.29853   
## displacement:year          5.934e-03  2.391e-03   2.482  0.01352 * 
## displacement:origin        2.398e-02  1.947e-02   1.232  0.21875   
## horsepower:weight         -1.968e-05  2.924e-05  -0.673  0.50124   
## horsepower:acceleration   -7.213e-03  3.719e-03  -1.939  0.05325 . 
## horsepower:year           -5.838e-03  3.938e-03  -1.482  0.13916   
## horsepower:origin          2.233e-03  2.930e-02   0.076  0.93931   
## weight:acceleration        2.346e-04  2.289e-04   1.025  0.30596   
## weight:year               -2.245e-04  2.127e-04  -1.056  0.29182   
## weight:origin             -5.789e-04  1.591e-03  -0.364  0.71623   
## acceleration:year          5.562e-02  2.558e-02   2.174  0.03033 * 
## acceleration:origin        4.583e-01  1.567e-01   2.926  0.00365 **
## year:origin                1.393e-01  7.399e-02   1.882  0.06062 . 
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 2.695 on 363 degrees of freedom
## Multiple R-squared:  0.8893, Adjusted R-squared:  0.8808 
## F-statistic: 104.2 on 28 and 363 DF,  p-value: < 2.2e-16
summary(lm(mpg ~ .*., data = Auto_new))
## 
## Call:
## lm(formula = mpg ~ . * ., data = Auto_new)
## 
## Residuals:
##     Min      1Q  Median      3Q     Max 
## -7.6303 -1.4481  0.0596  1.2739 11.1386 
## 
## Coefficients:
##                             Estimate Std. Error t value Pr(>|t|)   
## (Intercept)                3.548e+01  5.314e+01   0.668  0.50475   
## cylinders                  6.989e+00  8.248e+00   0.847  0.39738   
## displacement              -4.785e-01  1.894e-01  -2.527  0.01192 * 
## horsepower                 5.034e-01  3.470e-01   1.451  0.14769   
## weight                     4.133e-03  1.759e-02   0.235  0.81442   
## acceleration              -5.859e+00  2.174e+00  -2.696  0.00735 **
## year                       6.974e-01  6.097e-01   1.144  0.25340   
## origin                    -2.090e+01  7.097e+00  -2.944  0.00345 **
## cylinders:displacement    -3.383e-03  6.455e-03  -0.524  0.60051   
## cylinders:horsepower       1.161e-02  2.420e-02   0.480  0.63157   
## cylinders:weight           3.575e-04  8.955e-04   0.399  0.69000   
## cylinders:acceleration     2.779e-01  1.664e-01   1.670  0.09584 . 
## cylinders:year            -1.741e-01  9.714e-02  -1.793  0.07389 . 
## cylinders:origin           4.022e-01  4.926e-01   0.816  0.41482   
## displacement:horsepower   -8.491e-05  2.885e-04  -0.294  0.76867   
## displacement:weight        2.472e-05  1.470e-05   1.682  0.09342 . 
## displacement:acceleration -3.479e-03  3.342e-03  -1.041  0.29853   
## displacement:year          5.934e-03  2.391e-03   2.482  0.01352 * 
## displacement:origin        2.398e-02  1.947e-02   1.232  0.21875   
## horsepower:weight         -1.968e-05  2.924e-05  -0.673  0.50124   
## horsepower:acceleration   -7.213e-03  3.719e-03  -1.939  0.05325 . 
## horsepower:year           -5.838e-03  3.938e-03  -1.482  0.13916   
## horsepower:origin          2.233e-03  2.930e-02   0.076  0.93931   
## weight:acceleration        2.346e-04  2.289e-04   1.025  0.30596   
## weight:year               -2.245e-04  2.127e-04  -1.056  0.29182   
## weight:origin             -5.789e-04  1.591e-03  -0.364  0.71623   
## acceleration:year          5.562e-02  2.558e-02   2.174  0.03033 * 
## acceleration:origin        4.583e-01  1.567e-01   2.926  0.00365 **
## year:origin                1.393e-01  7.399e-02   1.882  0.06062 . 
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 2.695 on 363 degrees of freedom
## Multiple R-squared:  0.8893, Adjusted R-squared:  0.8808 
## F-statistic: 104.2 on 28 and 363 DF,  p-value: < 2.2e-16
summary(lm(mpg ~ acceleration+I(acceleration^2), data = Auto_new))
## 
## Call:
## lm(formula = mpg ~ acceleration + I(acceleration^2), data = Auto_new)
## 
## Residuals:
##      Min       1Q   Median       3Q      Max 
## -18.0877  -5.5700  -0.8524   4.3827  22.9813 
## 
## Coefficients:
##                    Estimate Std. Error t value Pr(>|t|)    
## (Intercept)       -15.26045    7.79899  -1.957 0.051095 .  
## acceleration        3.79787    0.98283   3.864 0.000131 ***
## I(acceleration^2)  -0.08156    0.03056  -2.669 0.007934 ** 
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 7.025 on 389 degrees of freedom
## Multiple R-squared:  0.194,  Adjusted R-squared:  0.1898 
## F-statistic:  46.8 on 2 and 389 DF,  p-value: < 2.2e-16
summary(lm(mpg ~ acceleration+I(sqrt(acceleration)), data = Auto_new))
## 
## Call:
## lm(formula = mpg ~ acceleration + I(sqrt(acceleration)), data = Auto_new)
## 
## Residuals:
##      Min       1Q   Median       3Q      Max 
## -17.9559  -5.5979  -0.8015   4.6222  22.8777 
## 
## Coefficients:
##                       Estimate Std. Error t value Pr(>|t|)   
## (Intercept)            -72.877     29.051  -2.509  0.01253 * 
## acceleration            -3.845      1.885  -2.040  0.04203 * 
## I(sqrt(acceleration))   39.750     14.823   2.682  0.00764 **
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 7.025 on 389 degrees of freedom
## Multiple R-squared:  0.1941, Adjusted R-squared:   0.19 
## F-statistic: 46.85 on 2 and 389 DF,  p-value: < 2.2e-16
data("Carseats", package = "ISLR")
lm_sales <- lm(Sales ~ Price + Urban + US, Carseats)
summary(lm_sales)
## 
## Call:
## lm(formula = Sales ~ Price + Urban + US, data = Carseats)
## 
## Residuals:
##     Min      1Q  Median      3Q     Max 
## -6.9206 -1.6220 -0.0564  1.5786  7.0581 
## 
## Coefficients:
##              Estimate Std. Error t value Pr(>|t|)    
## (Intercept) 13.043469   0.651012  20.036  < 2e-16 ***
## Price       -0.054459   0.005242 -10.389  < 2e-16 ***
## UrbanYes    -0.021916   0.271650  -0.081    0.936    
## USYes        1.200573   0.259042   4.635 4.86e-06 ***
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 2.472 on 396 degrees of freedom
## Multiple R-squared:  0.2393, Adjusted R-squared:  0.2335 
## F-statistic: 41.52 on 3 and 396 DF,  p-value: < 2.2e-16
  1. Provide an interpretation of each coefficient in the model. Be careful—some of the variables in the model are qualitative!
  1. Write out the model in equation form, being careful to handle the qualitative variables properly.

d.For which of the predictors can you reject the null hypothesis H0 : βj = 0? - The null hypothesis can be rejected for the Price and US variables, since their p-values is 2e-16 and 4.86e-06, respectively

lm_sales_new <- lm(Sales ~ Price + US, Carseats)
summary(lm_sales_new)
## 
## Call:
## lm(formula = Sales ~ Price + US, data = Carseats)
## 
## Residuals:
##     Min      1Q  Median      3Q     Max 
## -6.9269 -1.6286 -0.0574  1.5766  7.0515 
## 
## Coefficients:
##             Estimate Std. Error t value Pr(>|t|)    
## (Intercept) 13.03079    0.63098  20.652  < 2e-16 ***
## Price       -0.05448    0.00523 -10.416  < 2e-16 ***
## USYes        1.19964    0.25846   4.641 4.71e-06 ***
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 2.469 on 397 degrees of freedom
## Multiple R-squared:  0.2393, Adjusted R-squared:  0.2354 
## F-statistic: 62.43 on 2 and 397 DF,  p-value: < 2.2e-16
  1. How well do the models in (a) and (e) fit the data?
confint(lm_sales_new, level = 0.95)
##                   2.5 %      97.5 %
## (Intercept) 11.79032020 14.27126531
## Price       -0.06475984 -0.04419543
## USYes        0.69151957  1.70776632
par (mfrow = c(3, 2))
plot(hatvalues(lm_sales_new))
plot(lm_sales_new)

a. Recall that the coefficient estimate βˆ for the linear regression of Y onto X without an intercept is given by (3.38). Under what circumstance is the coefficient estimate for the regression of X onto Y the same as the coefficient estimate for the regression of Y onto X? - After equating the respective quotients to calculate the coefficients for both x and y, respectively, we can see that the estimates are equal for both x and y when the summation of x squared is equal to the summation of y squared.

set.seed(99)
x <- rnorm(100)
y= 3*x+rnorm(100)
df <- data.frame(x, y)

fit1 <- lm(y ~ x + 0, data = df)
fit2 <- lm(x ~ y + 0, data = df)

summary(fit1)$coefficients
##   Estimate Std. Error t value     Pr(>|t|)
## x 3.087646  0.1182444 26.1124 3.415688e-46
summary(fit2)$coefficients
##    Estimate Std. Error t value     Pr(>|t|)
## y 0.2828097 0.01083047 26.1124 3.415688e-46
set.seed(89)
x1 <- rnorm(100)
y1= x1
df1 <- data.frame(x1, y1)

fit2_1 <- lm(y1 ~ x1 + 0, data = df1)
fit2_2 <- lm(x1 ~ y1 + 0, data = df1)

summary(fit2_1)$coefficients
## Warning in summary.lm(fit2_1): essentially perfect fit: summary may be
## unreliable
##    Estimate   Std. Error      t value Pr(>|t|)
## x1        1 3.450101e-17 2.898466e+16        0
summary(fit2_2)$coefficients
## Warning in summary.lm(fit2_2): essentially perfect fit: summary may be
## unreliable
##    Estimate   Std. Error      t value Pr(>|t|)
## y1        1 3.450101e-17 2.898466e+16        0