library(tidyverse)
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setwd("C:/Users/rjzavaleta/Downloads/Data 101")
df <- read_csv("AllCountries.csv")
## Rows: 217 Columns: 26
## ── Column specification ────────────────────────────────────────────────────────
## Delimiter: ","
## chr  (2): Country, Code
## dbl (24): LandArea, Population, Density, GDP, Rural, CO2, PumpPrice, Militar...
## 
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## ℹ Specify the column types or set `show_col_types = FALSE` to quiet this message.
head(df)
## # A tibble: 6 × 26
##   Country Code  LandArea Population Density   GDP Rural   CO2 PumpPrice Military
##   <chr>   <chr>    <dbl>      <dbl>   <dbl> <dbl> <dbl> <dbl>     <dbl>    <dbl>
## 1 Afghan… AFG     653.       37.2      56.9   521  74.5  0.29      0.7      3.72
## 2 Albania ALB      27.4       2.87    105.   5254  39.7  1.98      1.36     4.08
## 3 Algeria DZA    2382.       42.2      17.7  4279  27.4  3.74      0.28    13.8 
## 4 Americ… ASM       0.2       0.055   277.     NA  12.8 NA        NA       NA   
## 5 Andorra AND       0.47      0.077   164.  42030  11.9  5.83     NA       NA   
## 6 Angola  AGO    1247.       30.8      24.7  3432  34.5  1.29      0.97     9.4 
## # ℹ 16 more variables: Health <dbl>, ArmedForces <dbl>, Internet <dbl>,
## #   Cell <dbl>, HIV <dbl>, Hunger <dbl>, Diabetes <dbl>, BirthRate <dbl>,
## #   DeathRate <dbl>, ElderlyPop <dbl>, LifeExpectancy <dbl>, FemaleLabor <dbl>,
## #   Unemployment <dbl>, Energy <dbl>, Electricity <dbl>, Developed <dbl>

2- Simple Linear Regression (Fitting and Interpretation): Using the AllCountries dataset, fit a simple linear regression model to predict LifeExpectancy (average life expectancy in years) based on GDP (gross domestic product per capita in $US). Report the intercept and slope coefficients and interpret their meaning in the context of the dataset. What does the R² value tell you about how well GDP explains variation in life expectancy across countries?

# Fit simple linear regression: mpg ~ weight
simple_model <- lm(LifeExpectancy ~ GDP, data = df)

# View the model summary
summary(simple_model)
## 
## Call:
## lm(formula = LifeExpectancy ~ GDP, data = df)
## 
## Residuals:
##     Min      1Q  Median      3Q     Max 
## -16.352  -3.882   1.550   4.458   9.330 
## 
## Coefficients:
##              Estimate Std. Error t value Pr(>|t|)    
## (Intercept) 6.842e+01  5.415e-01  126.36   <2e-16 ***
## GDP         2.476e-04  2.141e-05   11.56   <2e-16 ***
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 5.901 on 177 degrees of freedom
##   (38 observations deleted due to missingness)
## Multiple R-squared:  0.4304, Adjusted R-squared:  0.4272 
## F-statistic: 133.7 on 1 and 177 DF,  p-value: < 2.2e-16

3- Multiple Linear Regression (Fitting and Interpretation) Fit a multiple linear regression model to predict LifeExpectancy using GDP, Health (percentage of government expenditures on healthcare), and Internet (percentage of population with internet access) as predictors. Interpret the coefficient for Health, explaining what it means in terms of life expectancy while controlling for GDP and Internet. How does the adjusted R² compare to the simple regression model from Question 1, and what does this suggest about the additional predictors?

# Fit multiple linear regression: mpg ~ weight + horsepower + cylinders + year
multiple_model <- lm(LifeExpectancy ~ GDP   + Health + Internet, data = df)

# View the model summary
summary(multiple_model)
## 
## Call:
## lm(formula = LifeExpectancy ~ GDP + Health + Internet, data = df)
## 
## Residuals:
##      Min       1Q   Median       3Q      Max 
## -14.5662  -1.8227   0.4108   2.5422   9.4161 
## 
## Coefficients:
##              Estimate Std. Error t value Pr(>|t|)    
## (Intercept) 5.908e+01  8.149e-01  72.499  < 2e-16 ***
## GDP         2.367e-05  2.287e-05   1.035 0.302025    
## Health      2.479e-01  6.619e-02   3.745 0.000247 ***
## Internet    1.903e-01  1.656e-02  11.490  < 2e-16 ***
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 4.104 on 169 degrees of freedom
##   (44 observations deleted due to missingness)
## Multiple R-squared:  0.7213, Adjusted R-squared:  0.7164 
## F-statistic: 145.8 on 3 and 169 DF,  p-value: < 2.2e-16

Intercept: Predicted Life expectancy when all predictors are 0 is 59.08.

Coefficients (slope):

GDP: Positive (around 23.67) Health: Positive (around 24.79) The more healthcare there is it increases life expectancy Internet: Positive (around 19.03)

P-values: All coefficients are significant (<0.05).

Adjusted R²: about 0.81. This means about 81% of MPG variance is explained by this model. This is better than the 69% we got from the simple model earlier.

4- Checking Assumptions (Homoscedasticity and Normality) For the simple linear regression model from Question 1 (LifeExpectancy ~ GDP), describe how you would check the assumptions of homoscedasticity and normality of residuals. For each assumption, explain what an ideal outcome would look like and what a violation might indicate about the model’s reliability for predicting life expectancy. Afterwords, code your answer and reflect if it matched the ideal outcome.

Ideal outcomes: - Homoscedasticity: Constant variance of residuals. - Normality: Residuals are normally distributed.

par(mfrow=c(2,2)); plot(simple_model); par(mfrow=c(1,1))

The normality graph shows that the residuals are not all perfectly normal. The homoscedasticity graph shows that the residuals are kind of all together in the beggining. You can also see the red line start to go up after 80. Overall these graphs aren’t perfect but they are decent outcomes.

5- Diagnosing Model Fit (RMSE and Residuals) For the multiple regression model from Question 2 (LifeExpectancy ~ GDP + Health + Internet), calculate the RMSE and explain what it represents in the context of predicting life expectancy. How would large residuals for certain countries (e.g., those with unusually high or low life expectancy) affect your confidence in the model’s predictions, and what might you investigate further?

# For multiple model

# Calculate residuals
residuals_multiple <- resid(multiple_model)

# Calculate RMSE for multiple model
rmse_multiple <- sqrt(mean(residuals_multiple^2))
rmse_multiple
## [1] 4.056417

Multiple model, RMSE = 4.06 life expectanct meaning predictions miss around 4.06. Large residuals can affect this by making the predections a lot less accurate and you would have to investigate more on why the life expectancy is so high, so maybe look at things other than health, or internet.

6- Hypothetical Example (Multicollinearity in Multiple Regression) Suppose you are analyzing the AllCountries dataset and fit a multiple linear regression model to predict CO2 emissions (metric tons per capita) using Energy (kilotons of oil equivalent) and Electricity (kWh per capita) as predictors. You notice that Energy and Electricity are highly correlated. Explain how this multicollinearity might affect the interpretation of the regression coefficients and the reliability of the model.

I believe that the multicollinearity might affect the interperatiation of the regression results would be in a poor way. It might give you a model that is so good that it wouldn’t be realistic. Since one predictor is highly correlated with the other, it could possibly fail the basic assumptions and you would have to throw the model out the window and would have to look for a different predictor instead.