library(tidyverse)
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library(haven)
library(readxl)
library(readr)

#Assignment 1. Find a data set of which you can fit multiple linear regression and interpret your results

Dataset: mtcars (built-in R dataset)

### Let's load and explore the dataset

##The `mtcars` dataset contains fuel consumption and 10 aspects of car design for 32 car models from 1974. We use it to predict “mpg”(Miles Per Gallon) from horsepower, weight, and number of cylinders.

#   The below is to l oad the mtcars dataset into the environment  
# head()  is going to show the first 6 rows;
## summary() shows basic statistics for each variable
data(mtcars)
head(mtcars)
##                    mpg cyl disp  hp drat    wt  qsec vs am gear carb
## Mazda RX4         21.0   6  160 110 3.90 2.620 16.46  0  1    4    4
## Mazda RX4 Wag     21.0   6  160 110 3.90 2.875 17.02  0  1    4    4
## Datsun 710        22.8   4  108  93 3.85 2.320 18.61  1  1    4    1
## Hornet 4 Drive    21.4   6  258 110 3.08 3.215 19.44  1  0    3    1
## Hornet Sportabout 18.7   8  360 175 3.15 3.440 17.02  0  0    3    2
## Valiant           18.1   6  225 105 2.76 3.460 20.22  1  0    3    1
summary(mtcars)
##       mpg             cyl             disp             hp       
##  Min.   :10.40   Min.   :4.000   Min.   : 71.1   Min.   : 52.0  
##  1st Qu.:15.43   1st Qu.:4.000   1st Qu.:120.8   1st Qu.: 96.5  
##  Median :19.20   Median :6.000   Median :196.3   Median :123.0  
##  Mean   :20.09   Mean   :6.188   Mean   :230.7   Mean   :146.7  
##  3rd Qu.:22.80   3rd Qu.:8.000   3rd Qu.:326.0   3rd Qu.:180.0  
##  Max.   :33.90   Max.   :8.000   Max.   :472.0   Max.   :335.0  
##       drat             wt             qsec             vs        
##  Min.   :2.760   Min.   :1.513   Min.   :14.50   Min.   :0.0000  
##  1st Qu.:3.080   1st Qu.:2.581   1st Qu.:16.89   1st Qu.:0.0000  
##  Median :3.695   Median :3.325   Median :17.71   Median :0.0000  
##  Mean   :3.597   Mean   :3.217   Mean   :17.85   Mean   :0.4375  
##  3rd Qu.:3.920   3rd Qu.:3.610   3rd Qu.:18.90   3rd Qu.:1.0000  
##  Max.   :4.930   Max.   :5.424   Max.   :22.90   Max.   :1.0000  
##        am              gear            carb      
##  Min.   :0.0000   Min.   :3.000   Min.   :1.000  
##  1st Qu.:0.0000   1st Qu.:3.000   1st Qu.:2.000  
##  Median :0.0000   Median :4.000   Median :2.000  
##  Mean   :0.4062   Mean   :3.688   Mean   :2.812  
##  3rd Qu.:1.0000   3rd Qu.:4.000   3rd Qu.:4.000  
##  Max.   :1.0000   Max.   :5.000   Max.   :8.000

Let’s check for the missing values

sum(is.na(mtcars))
## [1] 0

Let’s do a scater plot to compare weight vs MPG(Miles Per Gallon)

ggplot(mtcars, aes(x = wt, y = mpg)) +
  geom_point(color = "brown", size = 3) +
  geom_smooth(method = "lm", se = FALSE, color = "lightblue") +
  labs(title = "Weight vs MPG", x = "Weight (1000 lbs)", y = "Miles Per Gallon")
## `geom_smooth()` using formula = 'y ~ x'

Let’s do a scatter plot to compare horsepower vs mpg

ggplot(mtcars, aes(x = hp, y = mpg)) + 
geom_point(color = "lightpink", size = 3) + 
geom_smooth(method = "lm", se = FALSE, color = "lightgreen") +
labs(title = "Horsepower vs MPG", x = "Horsepower", y = "Miles Per Gallon")
## `geom_smooth()` using formula = 'y ~ x'

Let’s do a scatter plot to compare cylinders vs mpg

ggplot(mtcars, aes(x = cyl, y = mpg)) +
  geom_point(color = "skyblue", size = 3) + 
  geom_smooth(method = "lm", se = FALSE, color = "darkblue") +
  labs(title = "Cylinders vs MPG", x = "Number of Cylinders", y = "Miles Per Gallon")
## `geom_smooth()` using formula = 'y ~ x'

Let’s fit the multiple linear regression model

model <- lm(mpg ~ hp + wt + cyl, data = mtcars)
model
## 
## Call:
## lm(formula = mpg ~ hp + wt + cyl, data = mtcars)
## 
## Coefficients:
## (Intercept)           hp           wt          cyl  
##    38.75179     -0.01804     -3.16697     -0.94162

Let’s view model result

summary(model)
## 
## Call:
## lm(formula = mpg ~ hp + wt + cyl, data = mtcars)
## 
## Residuals:
##     Min      1Q  Median      3Q     Max 
## -3.9290 -1.5598 -0.5311  1.1850  5.8986 
## 
## Coefficients:
##             Estimate Std. Error t value Pr(>|t|)    
## (Intercept) 38.75179    1.78686  21.687  < 2e-16 ***
## hp          -0.01804    0.01188  -1.519 0.140015    
## wt          -3.16697    0.74058  -4.276 0.000199 ***
## cyl         -0.94162    0.55092  -1.709 0.098480 .  
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 2.512 on 28 degrees of freedom
## Multiple R-squared:  0.8431, Adjusted R-squared:  0.8263 
## F-statistic: 50.17 on 3 and 28 DF,  p-value: 2.184e-11

Model diagnostic plots

 par(mfrow = c(2, 2))
plot(model)

Residuals vs Fitted :The red line is fairly flat and close to zero, which means that the linearity assumption holds. The spread of points looks even. Three cars are labelled (Chrysler Imperial, Toyota Corolla, Fiat 128) as slight outliers but nothing alarming.

Q-Q Residuals:Most points follow the dashed diagonal line closely. This means the residuals are approximately normally distributed , a key assumption of linear regression is satisfied. The same three cars deviate at the tail ends, but this is acceptable for a dataset of 32 observations.

Scale-Location:The red line is relatively flat with points spread fairly evenly above and below. This suggests homoscedasticity ,this means the variance of residuals is roughly constant across fitted values. The assumption of equal variance is reasonably met.

Residuals vs Leverage:No points fall outside the Cook’s distance dashed lines (0.5 boundary). This means there are no highly influential outliers that would distort the model. Chrysler Imperial has slightly higher leverage but is still within acceptable range.

Let’s do the interpretation

# R-squared: how much variance in mpg is explained by the model 
# Coefficients: direction and size of each predictor's effect 
# p-values: which predictors are statistically significant 

cat("Model R-squared:", summary(model)$r.squared, "\n") 
## Model R-squared: 0.84315
cat("Adjusted R-squared:", summary(model)$adj.r.squared, "\n") 
## Adjusted R-squared: 0.8263446
cat("Residual Standard Error:", summary(model)$sigma, "\n")
## Residual Standard Error: 2.511548

Let’s predict mpg for a new car .

 new_car <- data.frame(hp = 150, wt = 3.0, cyl = 6) 
predicted_mpg <- predict(model, newdata = new_car) 
cat("Predicted MPG for new car:", round(predicted_mpg, 2), "\n")
## Predicted MPG for new car: 20.9

#Assignment 2: read about variable selection methods

Variable selection is the process of choosing the most relevant predictor variables to include in a regression model. When building a multiple linear regression model, including too many variables can cause what we call overfitting ,which means that the model fits the training data too well but performs poorly on new data. Including too few variables causes underfitting , the model misses important patterns.

The goal of variable selection is to find the easiest model that still elaborate the data well.

The variable Selection is important due to the below reason: -Removes irrelevant or redundant predictors - Decrease model complexity -Improves prediction accuracy on new data.

The three main methods are as below :

  1. Backward Elimination. Start with all variables in the model. At each step, remove the variable with the highest p-value{predictor value} (least significant). Stop when all remaining variables are significant or when AIC stops improving.

AIC (Akaike Information Criterion) measures model quality , lower AIC = better model.

  1. Forward Selection. Start with no variables ,it means it intercept only. At each step, add the variable that most improves the model (lowest AIC). Stop when adding more variables no longer helps.

  2. Stepwise Selection ,for both directions. A combination of forward and backward. Variables can be added or removed at each step depending on which action improves AIC the most. This is the most flexible and widely used method.

The below codes will help understand more, the variable selection methods.

#Let’s use mtcars (built-in R dataset)

data(mtcars)

Let’s view the full model,showing all the variables.

full_model <- lm(mpg ~ ., data = mtcars) 
summary(full_model)
## 
## Call:
## lm(formula = mpg ~ ., data = mtcars)
## 
## Residuals:
##     Min      1Q  Median      3Q     Max 
## -3.4506 -1.6044 -0.1196  1.2193  4.6271 
## 
## Coefficients:
##             Estimate Std. Error t value Pr(>|t|)  
## (Intercept) 12.30337   18.71788   0.657   0.5181  
## cyl         -0.11144    1.04502  -0.107   0.9161  
## disp         0.01334    0.01786   0.747   0.4635  
## hp          -0.02148    0.02177  -0.987   0.3350  
## drat         0.78711    1.63537   0.481   0.6353  
## wt          -3.71530    1.89441  -1.961   0.0633 .
## qsec         0.82104    0.73084   1.123   0.2739  
## vs           0.31776    2.10451   0.151   0.8814  
## am           2.52023    2.05665   1.225   0.2340  
## gear         0.65541    1.49326   0.439   0.6652  
## carb        -0.19942    0.82875  -0.241   0.8122  
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 2.65 on 21 degrees of freedom
## Multiple R-squared:  0.869,  Adjusted R-squared:  0.8066 
## F-statistic: 13.93 on 10 and 21 DF,  p-value: 3.793e-07

Let’s do the backward elimination

backward_model <- step(full_model, direction = "backward") 
## Start:  AIC=70.9
## mpg ~ cyl + disp + hp + drat + wt + qsec + vs + am + gear + carb
## 
##        Df Sum of Sq    RSS    AIC
## - cyl   1    0.0799 147.57 68.915
## - vs    1    0.1601 147.66 68.932
## - carb  1    0.4067 147.90 68.986
## - gear  1    1.3531 148.85 69.190
## - drat  1    1.6270 149.12 69.249
## - disp  1    3.9167 151.41 69.736
## - hp    1    6.8399 154.33 70.348
## - qsec  1    8.8641 156.36 70.765
## <none>              147.49 70.898
## - am    1   10.5467 158.04 71.108
## - wt    1   27.0144 174.51 74.280
## 
## Step:  AIC=68.92
## mpg ~ disp + hp + drat + wt + qsec + vs + am + gear + carb
## 
##        Df Sum of Sq    RSS    AIC
## - vs    1    0.2685 147.84 66.973
## - carb  1    0.5201 148.09 67.028
## - gear  1    1.8211 149.40 67.308
## - drat  1    1.9826 149.56 67.342
## - disp  1    3.9009 151.47 67.750
## - hp    1    7.3632 154.94 68.473
## <none>              147.57 68.915
## - qsec  1   10.0933 157.67 69.032
## - am    1   11.8359 159.41 69.384
## - wt    1   27.0280 174.60 72.297
## 
## Step:  AIC=66.97
## mpg ~ disp + hp + drat + wt + qsec + am + gear + carb
## 
##        Df Sum of Sq    RSS    AIC
## - carb  1    0.6855 148.53 65.121
## - gear  1    2.1437 149.99 65.434
## - drat  1    2.2139 150.06 65.449
## - disp  1    3.6467 151.49 65.753
## - hp    1    7.1060 154.95 66.475
## <none>              147.84 66.973
## - am    1   11.5694 159.41 67.384
## - qsec  1   15.6830 163.53 68.200
## - wt    1   27.3799 175.22 70.410
## 
## Step:  AIC=65.12
## mpg ~ disp + hp + drat + wt + qsec + am + gear
## 
##        Df Sum of Sq    RSS    AIC
## - gear  1     1.565 150.09 63.457
## - drat  1     1.932 150.46 63.535
## <none>              148.53 65.121
## - disp  1    10.110 158.64 65.229
## - am    1    12.323 160.85 65.672
## - hp    1    14.826 163.35 66.166
## - qsec  1    26.408 174.94 68.358
## - wt    1    69.127 217.66 75.350
## 
## Step:  AIC=63.46
## mpg ~ disp + hp + drat + wt + qsec + am
## 
##        Df Sum of Sq    RSS    AIC
## - drat  1     3.345 153.44 62.162
## - disp  1     8.545 158.64 63.229
## <none>              150.09 63.457
## - hp    1    13.285 163.38 64.171
## - am    1    20.036 170.13 65.466
## - qsec  1    25.574 175.67 66.491
## - wt    1    67.572 217.66 73.351
## 
## Step:  AIC=62.16
## mpg ~ disp + hp + wt + qsec + am
## 
##        Df Sum of Sq    RSS    AIC
## - disp  1     6.629 160.07 61.515
## <none>              153.44 62.162
## - hp    1    12.572 166.01 62.682
## - qsec  1    26.470 179.91 65.255
## - am    1    32.198 185.63 66.258
## - wt    1    69.043 222.48 72.051
## 
## Step:  AIC=61.52
## mpg ~ hp + wt + qsec + am
## 
##        Df Sum of Sq    RSS    AIC
## - hp    1     9.219 169.29 61.307
## <none>              160.07 61.515
## - qsec  1    20.225 180.29 63.323
## - am    1    25.993 186.06 64.331
## - wt    1    78.494 238.56 72.284
## 
## Step:  AIC=61.31
## mpg ~ wt + qsec + am
## 
##        Df Sum of Sq    RSS    AIC
## <none>              169.29 61.307
## - am    1    26.178 195.46 63.908
## - qsec  1   109.034 278.32 75.217
## - wt    1   183.347 352.63 82.790
summary(backward_model)
## 
## Call:
## lm(formula = mpg ~ wt + qsec + am, data = mtcars)
## 
## Residuals:
##     Min      1Q  Median      3Q     Max 
## -3.4811 -1.5555 -0.7257  1.4110  4.6610 
## 
## Coefficients:
##             Estimate Std. Error t value Pr(>|t|)    
## (Intercept)   9.6178     6.9596   1.382 0.177915    
## wt           -3.9165     0.7112  -5.507 6.95e-06 ***
## qsec          1.2259     0.2887   4.247 0.000216 ***
## am            2.9358     1.4109   2.081 0.046716 *  
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 2.459 on 28 degrees of freedom
## Multiple R-squared:  0.8497, Adjusted R-squared:  0.8336 
## F-statistic: 52.75 on 3 and 28 DF,  p-value: 1.21e-11

Forward selection

null_model <- lm(mpg ~ 1, data = mtcars) 
forward_model <- step(null_model, 
                      scope = list(upper = full_model),
                      direction = "forward") 
## Start:  AIC=115.94
## mpg ~ 1
## 
##        Df Sum of Sq     RSS     AIC
## + wt    1    847.73  278.32  73.217
## + cyl   1    817.71  308.33  76.494
## + disp  1    808.89  317.16  77.397
## + hp    1    678.37  447.67  88.427
## + drat  1    522.48  603.57  97.988
## + vs    1    496.53  629.52  99.335
## + am    1    405.15  720.90 103.672
## + carb  1    341.78  784.27 106.369
## + gear  1    259.75  866.30 109.552
## + qsec  1    197.39  928.66 111.776
## <none>              1126.05 115.943
## 
## Step:  AIC=73.22
## mpg ~ wt
## 
##        Df Sum of Sq    RSS    AIC
## + cyl   1    87.150 191.17 63.198
## + hp    1    83.274 195.05 63.840
## + qsec  1    82.858 195.46 63.908
## + vs    1    54.228 224.09 68.283
## + carb  1    44.602 233.72 69.628
## + disp  1    31.639 246.68 71.356
## <none>              278.32 73.217
## + drat  1     9.081 269.24 74.156
## + gear  1     1.137 277.19 75.086
## + am    1     0.002 278.32 75.217
## 
## Step:  AIC=63.2
## mpg ~ wt + cyl
## 
##        Df Sum of Sq    RSS    AIC
## + hp    1   14.5514 176.62 62.665
## + carb  1   13.7724 177.40 62.805
## <none>              191.17 63.198
## + qsec  1   10.5674 180.60 63.378
## + gear  1    3.0281 188.14 64.687
## + disp  1    2.6796 188.49 64.746
## + vs    1    0.7059 190.47 65.080
## + am    1    0.1249 191.05 65.177
## + drat  1    0.0010 191.17 65.198
## 
## Step:  AIC=62.66
## mpg ~ wt + cyl + hp
## 
##        Df Sum of Sq    RSS    AIC
## <none>              176.62 62.665
## + am    1    6.6228 170.00 63.442
## + disp  1    6.1762 170.44 63.526
## + carb  1    2.5187 174.10 64.205
## + drat  1    2.2453 174.38 64.255
## + qsec  1    1.4010 175.22 64.410
## + gear  1    0.8558 175.76 64.509
## + vs    1    0.0599 176.56 64.654
summary(forward_model)
## 
## Call:
## lm(formula = mpg ~ wt + cyl + hp, data = mtcars)
## 
## Residuals:
##     Min      1Q  Median      3Q     Max 
## -3.9290 -1.5598 -0.5311  1.1850  5.8986 
## 
## Coefficients:
##             Estimate Std. Error t value Pr(>|t|)    
## (Intercept) 38.75179    1.78686  21.687  < 2e-16 ***
## wt          -3.16697    0.74058  -4.276 0.000199 ***
## cyl         -0.94162    0.55092  -1.709 0.098480 .  
## hp          -0.01804    0.01188  -1.519 0.140015    
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 2.512 on 28 degrees of freedom
## Multiple R-squared:  0.8431, Adjusted R-squared:  0.8263 
## F-statistic: 50.17 on 3 and 28 DF,  p-value: 2.184e-11

Stepwise solution

stepwise_model <- step(null_model, scope = list(upper = full_model),
 direction = "both")
## Start:  AIC=115.94
## mpg ~ 1
## 
##        Df Sum of Sq     RSS     AIC
## + wt    1    847.73  278.32  73.217
## + cyl   1    817.71  308.33  76.494
## + disp  1    808.89  317.16  77.397
## + hp    1    678.37  447.67  88.427
## + drat  1    522.48  603.57  97.988
## + vs    1    496.53  629.52  99.335
## + am    1    405.15  720.90 103.672
## + carb  1    341.78  784.27 106.369
## + gear  1    259.75  866.30 109.552
## + qsec  1    197.39  928.66 111.776
## <none>              1126.05 115.943
## 
## Step:  AIC=73.22
## mpg ~ wt
## 
##        Df Sum of Sq     RSS     AIC
## + cyl   1     87.15  191.17  63.198
## + hp    1     83.27  195.05  63.840
## + qsec  1     82.86  195.46  63.908
## + vs    1     54.23  224.09  68.283
## + carb  1     44.60  233.72  69.628
## + disp  1     31.64  246.68  71.356
## <none>               278.32  73.217
## + drat  1      9.08  269.24  74.156
## + gear  1      1.14  277.19  75.086
## + am    1      0.00  278.32  75.217
## - wt    1    847.73 1126.05 115.943
## 
## Step:  AIC=63.2
## mpg ~ wt + cyl
## 
##        Df Sum of Sq    RSS    AIC
## + hp    1    14.551 176.62 62.665
## + carb  1    13.772 177.40 62.805
## <none>              191.17 63.198
## + qsec  1    10.567 180.60 63.378
## + gear  1     3.028 188.14 64.687
## + disp  1     2.680 188.49 64.746
## + vs    1     0.706 190.47 65.080
## + am    1     0.125 191.05 65.177
## + drat  1     0.001 191.17 65.198
## - cyl   1    87.150 278.32 73.217
## - wt    1   117.162 308.33 76.494
## 
## Step:  AIC=62.66
## mpg ~ wt + cyl + hp
## 
##        Df Sum of Sq    RSS    AIC
## <none>              176.62 62.665
## - hp    1    14.551 191.17 63.198
## + am    1     6.623 170.00 63.442
## + disp  1     6.176 170.44 63.526
## - cyl   1    18.427 195.05 63.840
## + carb  1     2.519 174.10 64.205
## + drat  1     2.245 174.38 64.255
## + qsec  1     1.401 175.22 64.410
## + gear  1     0.856 175.76 64.509
## + vs    1     0.060 176.56 64.654
## - wt    1   115.354 291.98 76.750
 summary(stepwise_model)
## 
## Call:
## lm(formula = mpg ~ wt + cyl + hp, data = mtcars)
## 
## Residuals:
##     Min      1Q  Median      3Q     Max 
## -3.9290 -1.5598 -0.5311  1.1850  5.8986 
## 
## Coefficients:
##             Estimate Std. Error t value Pr(>|t|)    
## (Intercept) 38.75179    1.78686  21.687  < 2e-16 ***
## wt          -3.16697    0.74058  -4.276 0.000199 ***
## cyl         -0.94162    0.55092  -1.709 0.098480 .  
## hp          -0.01804    0.01188  -1.519 0.140015    
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 2.512 on 28 degrees of freedom
## Multiple R-squared:  0.8431, Adjusted R-squared:  0.8263 
## F-statistic: 50.17 on 3 and 28 DF,  p-value: 2.184e-11

Let’s extract the best final model based on selection results

 final_model <- lm(mpg ~ wt + cyl + hp, data = mtcars) 
summary(final_model)
## 
## Call:
## lm(formula = mpg ~ wt + cyl + hp, data = mtcars)
## 
## Residuals:
##     Min      1Q  Median      3Q     Max 
## -3.9290 -1.5598 -0.5311  1.1850  5.8986 
## 
## Coefficients:
##             Estimate Std. Error t value Pr(>|t|)    
## (Intercept) 38.75179    1.78686  21.687  < 2e-16 ***
## wt          -3.16697    0.74058  -4.276 0.000199 ***
## cyl         -0.94162    0.55092  -1.709 0.098480 .  
## hp          -0.01804    0.01188  -1.519 0.140015    
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 2.512 on 28 degrees of freedom
## Multiple R-squared:  0.8431, Adjusted R-squared:  0.8263 
## F-statistic: 50.17 on 3 and 28 DF,  p-value: 2.184e-11

Let’s plot actual vs predicted

mtcars$predicted <- predict(final_model)
 ggplot(mtcars, aes(x = predicted, y = mpg)) + 
geom_point(color = "steelblue", size = 3) + geom_abline(slope = 1, intercept = 0, color = "red", linetype = "dashed") + 
labs(title = "Actual vs Predicted MPG", x = "Predicted MPG", y = "Actual MPG")