Load Data

url <- "https://raw.githubusercontent.com/selva86/datasets/master/BostonHousing.csv"
df <- read.csv(url)
head(df)
##      crim zn indus chas   nox    rm  age    dis rad tax ptratio      b lstat
## 1 0.00632 18  2.31    0 0.538 6.575 65.2 4.0900   1 296    15.3 396.90  4.98
## 2 0.02731  0  7.07    0 0.469 6.421 78.9 4.9671   2 242    17.8 396.90  9.14
## 3 0.02729  0  7.07    0 0.469 7.185 61.1 4.9671   2 242    17.8 392.83  4.03
## 4 0.03237  0  2.18    0 0.458 6.998 45.8 6.0622   3 222    18.7 394.63  2.94
## 5 0.06905  0  2.18    0 0.458 7.147 54.2 6.0622   3 222    18.7 396.90  5.33
## 6 0.02985  0  2.18    0 0.458 6.430 58.7 6.0622   3 222    18.7 394.12  5.21
##   medv
## 1 24.0
## 2 21.6
## 3 34.7
## 4 33.4
## 5 36.2
## 6 28.7

Full Model

model <- lm(medv ~ ., data = df)
summary(model)
## 
## Call:
## lm(formula = medv ~ ., data = df)
## 
## Residuals:
##     Min      1Q  Median      3Q     Max 
## -15.595  -2.730  -0.518   1.777  26.199 
## 
## Coefficients:
##               Estimate Std. Error t value Pr(>|t|)    
## (Intercept)  3.646e+01  5.103e+00   7.144 3.28e-12 ***
## crim        -1.080e-01  3.286e-02  -3.287 0.001087 ** 
## zn           4.642e-02  1.373e-02   3.382 0.000778 ***
## indus        2.056e-02  6.150e-02   0.334 0.738288    
## chas         2.687e+00  8.616e-01   3.118 0.001925 ** 
## nox         -1.777e+01  3.820e+00  -4.651 4.25e-06 ***
## rm           3.810e+00  4.179e-01   9.116  < 2e-16 ***
## age          6.922e-04  1.321e-02   0.052 0.958229    
## dis         -1.476e+00  1.995e-01  -7.398 6.01e-13 ***
## rad          3.060e-01  6.635e-02   4.613 5.07e-06 ***
## tax         -1.233e-02  3.760e-03  -3.280 0.001112 ** 
## ptratio     -9.527e-01  1.308e-01  -7.283 1.31e-12 ***
## b            9.312e-03  2.686e-03   3.467 0.000573 ***
## lstat       -5.248e-01  5.072e-02 -10.347  < 2e-16 ***
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 4.745 on 492 degrees of freedom
## Multiple R-squared:  0.7406, Adjusted R-squared:  0.7338 
## F-statistic: 108.1 on 13 and 492 DF,  p-value: < 2.2e-16

Final Model

model_final <- lm(medv ~ . - indus - age, data = df)
summary(model_final)
## 
## Call:
## lm(formula = medv ~ . - indus - age, data = df)
## 
## Residuals:
##      Min       1Q   Median       3Q      Max 
## -15.5984  -2.7386  -0.5046   1.7273  26.2373 
## 
## Coefficients:
##               Estimate Std. Error t value Pr(>|t|)    
## (Intercept)  36.341145   5.067492   7.171 2.73e-12 ***
## crim         -0.108413   0.032779  -3.307 0.001010 ** 
## zn            0.045845   0.013523   3.390 0.000754 ***
## chas          2.718716   0.854240   3.183 0.001551 ** 
## nox         -17.376023   3.535243  -4.915 1.21e-06 ***
## rm            3.801579   0.406316   9.356  < 2e-16 ***
## dis          -1.492711   0.185731  -8.037 6.84e-15 ***
## rad           0.299608   0.063402   4.726 3.00e-06 ***
## tax          -0.011778   0.003372  -3.493 0.000521 ***
## ptratio      -0.946525   0.129066  -7.334 9.24e-13 ***
## b             0.009291   0.002674   3.475 0.000557 ***
## lstat        -0.522553   0.047424 -11.019  < 2e-16 ***
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 4.736 on 494 degrees of freedom
## Multiple R-squared:  0.7406, Adjusted R-squared:  0.7348 
## F-statistic: 128.2 on 11 and 494 DF,  p-value: < 2.2e-16

Breusch-Pagan Test

library(lmtest)
## Warning: package 'lmtest' was built under R version 4.5.3
## Loading required package: zoo
## Warning: package 'zoo' was built under R version 4.5.3
## 
## Attaching package: 'zoo'
## The following objects are masked from 'package:base':
## 
##     as.Date, as.Date.numeric
bptest(model_final)
## 
##  studentized Breusch-Pagan test
## 
## data:  model_final
## BP = 59.907, df = 11, p-value = 9.647e-09

VIF

library(car)
## Warning: package 'car' was built under R version 4.5.3
## Loading required package: carData
## Warning: package 'carData' was built under R version 4.5.3
vif(model_final)
##     crim       zn     chas      nox       rm      dis      rad      tax 
## 1.789704 2.239229 1.059819 3.778011 1.834806 3.443420 6.861126 7.272386 
##  ptratio        b    lstat 
## 1.757681 1.341559 2.581984