Predict median_household_income for a US County

Look at the data

library(openintro)
## Please visit openintro.org for free statistics materials
## 
## Attaching package: 'openintro'
## The following objects are masked from 'package:datasets':
## 
##     cars, trees
library(tidyverse)
## Loading tidyverse: ggplot2
## Loading tidyverse: tibble
## Loading tidyverse: tidyr
## Loading tidyverse: readr
## Loading tidyverse: purrr
## Loading tidyverse: dplyr
## Warning: package 'dplyr' was built under R version 3.4.2
## Conflicts with tidy packages ----------------------------------------------
## filter(): dplyr, stats
## lag():    dplyr, stats
summary(countyComplete)
##       state                     name           FIPS      
##  Texas   : 254   Washington County:  30   Min.   : 1001  
##  Georgia : 159   Jefferson County :  25   1st Qu.:18178  
##  Virginia: 134   Franklin County  :  24   Median :29177  
##  Kentucky: 120   Jackson County   :  23   Mean   :30390  
##  Missouri: 115   Lincoln County   :  23   3rd Qu.:45082  
##  Kansas  : 105   Madison County   :  19   Max.   :56045  
##  (Other) :2256   (Other)          :2999                  
##     pop2010           pop2000         age_under_5      age_under_18  
##  Min.   :     82   Min.   :     67   Min.   : 0.000   Min.   : 0.00  
##  1st Qu.:  11104   1st Qu.:  11210   1st Qu.: 5.500   1st Qu.:21.40  
##  Median :  25857   Median :  24608   Median : 6.200   Median :23.30  
##  Mean   :  98233   Mean   :  89623   Mean   : 6.261   Mean   :23.42  
##  3rd Qu.:  66699   3rd Qu.:  61766   3rd Qu.: 6.800   3rd Qu.:25.10  
##  Max.   :9818605   Max.   :9519338   Max.   :12.600   Max.   :41.60  
##                    NA's   :3                                         
##   age_over_65        female          white           black       
##  Min.   : 3.50   Min.   :27.90   Min.   : 2.70   Min.   : 0.000  
##  1st Qu.:13.10   1st Qu.:49.60   1st Qu.:75.25   1st Qu.: 0.500  
##  Median :15.60   Median :50.50   Median :89.10   Median : 2.000  
##  Mean   :15.88   Mean   :50.03   Mean   :82.89   Mean   : 8.931  
##  3rd Qu.:18.20   3rd Qu.:51.10   3rd Qu.:95.50   3rd Qu.:10.200  
##  Max.   :43.40   Max.   :56.80   Max.   :99.20   Max.   :85.700  
##                                                  NA's   :17      
##      native           asian           pac_isl       two_plus_races  
##  Min.   : 0.000   Min.   : 0.000   Min.   : 0.000   Min.   : 0.100  
##  1st Qu.: 0.200   1st Qu.: 0.300   1st Qu.: 0.000   1st Qu.: 1.100  
##  Median : 0.400   Median : 0.500   Median : 0.000   Median : 1.600  
##  Mean   : 2.026   Mean   : 1.166   Mean   : 0.154   Mean   : 1.976  
##  3rd Qu.: 0.800   3rd Qu.: 1.000   3rd Qu.: 0.100   3rd Qu.: 2.300  
##  Max.   :96.000   Max.   :43.900   Max.   :48.900   Max.   :29.500  
##  NA's   :4        NA's   :24       NA's   :1697                     
##     hispanic      white_not_hispanic no_move_in_one_plus_year
##  Min.   : 0.000   Min.   : 2.70      Min.   : 51.6           
##  1st Qu.: 1.600   1st Qu.:66.95      1st Qu.: 83.2           
##  Median : 3.300   Median :85.80      Median : 86.3           
##  Mean   : 8.284   Mean   :78.29      Mean   : 85.8           
##  3rd Qu.: 8.200   3rd Qu.:94.20      3rd Qu.: 89.0           
##  Max.   :95.700   Max.   :99.20      Max.   :100.0           
##                                                              
##   foreign_born    foreign_spoken_at_home    hs_grad        bachelors    
##  Min.   : 0.000   Min.   : 0.000         Min.   :47.90   Min.   : 3.70  
##  1st Qu.: 1.200   1st Qu.: 2.800         1st Qu.:78.40   1st Qu.:13.10  
##  Median : 2.400   Median : 4.800         Median :84.60   Median :16.90  
##  Mean   : 4.372   Mean   : 9.057         Mean   :83.11   Mean   :19.03  
##  3rd Qu.: 5.300   3rd Qu.:10.000         3rd Qu.:88.60   3rd Qu.:22.60  
##  Max.   :72.200   Max.   :96.000         Max.   :99.30   Max.   :71.00  
##                                                                         
##     veterans      mean_work_travel housing_units     home_ownership 
##  Min.   :     0   Min.   : 4.30    Min.   :     50   Min.   : 0.00  
##  1st Qu.:   958   1st Qu.:19.00    1st Qu.:   5416   1st Qu.:69.50  
##  Median :  2180   Median :22.40    Median :  12162   Median :74.60  
##  Mean   :  7207   Mean   :22.73    Mean   :  41904   Mean   :73.26  
##  3rd Qu.:  5944   3rd Qu.:26.10    3rd Qu.:  30574   3rd Qu.:78.40  
##  Max.   :368128   Max.   :44.20    Max.   :3445076   Max.   :91.30  
##                                                                     
##  housing_multi_unit median_val_owner_occupied   households     
##  Min.   : 0.00      Min.   :      0           Min.   :     22  
##  1st Qu.: 6.10      1st Qu.:  80200           1st Qu.:   4260  
##  Median : 9.70      Median : 105900           Median :   9868  
##  Mean   :12.33      Mean   : 132545           Mean   :  36346  
##  3rd Qu.:15.90      3rd Qu.: 152950           3rd Qu.:  25358  
##  Max.   :98.50      Max.   :1000001           Max.   :3217889  
##                                                                
##  persons_per_household per_capita_income median_household_income
##  Min.   :1.100         Min.   : 7772     Min.   : 19351         
##  1st Qu.:2.370         1st Qu.:19030     1st Qu.: 36952         
##  Median :2.490         Median :21773     Median : 42445         
##  Mean   :2.513         Mean   :22505     Mean   : 44270         
##  3rd Qu.:2.630         3rd Qu.:24814     3rd Qu.: 49142         
##  Max.   :4.470         Max.   :64381     Max.   :115574         
##                                                                 
##     poverty     private_nonfarm_establishments private_nonfarm_employment
##  Min.   : 0.0   Min.   :     0                 Min.   :      0           
##  1st Qu.:11.0   1st Qu.:   229                 1st Qu.:   2109           
##  Median :14.7   Median :   551                 Median :   6351           
##  Mean   :15.5   Mean   :  2362                 Mean   :  35656           
##  3rd Qu.:19.0   3rd Qu.:  1484                 3rd Qu.:  19436           
##  Max.   :53.5   Max.   :245523                 Max.   :3703233           
##                                                                          
##  percent_change_private_nonfarm_employment nonemployment_establishments
##  Min.   :-83.2000                          Min.   :    21              
##  1st Qu.:-12.0000                          1st Qu.:   729              
##  Median : -2.0000                          Median :  1594              
##  Mean   :  0.5338                          Mean   :  6720              
##  3rd Qu.:  9.8000                          3rd Qu.:  4130              
##  Max.   :386.5000                          Max.   :821177              
##  NA's   :67                                NA's   :5                   
##      firms         black_owned_firms native_owned_firms asian_owned_firms
##  Min.   :     27   Min.   : 0.200    Min.   : 0.200     Min.   : 0.300   
##  1st Qu.:   1074   1st Qu.: 2.100    1st Qu.: 0.525     1st Qu.: 1.400   
##  Median :   2350   Median : 5.700    Median : 0.900     Median : 2.200   
##  Mean   :   9301   Mean   : 9.806    Mean   : 3.785     Mean   : 3.422   
##  3rd Qu.:   6034   3rd Qu.:13.350    3rd Qu.: 2.300     3rd Qu.: 3.700   
##  Max.   :1046940   Max.   :66.700    Max.   :71.800     Max.   :56.600   
##  NA's   :176       NA's   :2376      NA's   :2653       NA's   :2408     
##  pac_isl_owned_firms hispanic_owned_firms women_owned_firms
##  Min.   : 0.0000     Min.   : 0.300       Min.   : 6.50    
##  1st Qu.: 0.1000     1st Qu.: 1.400       1st Qu.:22.70    
##  Median : 0.1000     Median : 2.800       Median :26.20    
##  Mean   : 0.7171     Mean   : 6.811       Mean   :25.96    
##  3rd Qu.: 0.3000     3rd Qu.: 6.800       3rd Qu.:29.20    
##  Max.   :10.5000     Max.   :78.000       Max.   :56.20    
##  NA's   :3073        NA's   :2363         NA's   :970      
##  manufacturer_shipments_2007 mercent_whole_sales_2007     sales          
##  Min.   :        0           Min.   :        0        Min.   :        0  
##  1st Qu.:        0           1st Qu.:    42125        1st Qu.:    79988  
##  Median :   238180           Median :   138930        Median :   257667  
##  Mean   :  1680613           Mean   :  1794262        Mean   :  1262270  
##  3rd Qu.:  1161878           3rd Qu.:   562056        3rd Qu.:   791435  
##  Max.   :169275136           Max.   :205478751        Max.   :119111840  
##  NA's   :488                 NA's   :1022             NA's   :42         
##  sales_per_capita accommodation_food_service building_permits
##  Min.   :    0    Min.   :       0           Min.   :    0   
##  1st Qu.: 6993    1st Qu.:    9349           1st Qu.:    5   
##  Median : 9793    Median :   31065           Median :   32   
##  Mean   :10375    Mean   :  211181           Mean   :  192   
##  3rd Qu.:12980    3rd Qu.:  110695           3rd Qu.:  123   
##  Max.   :80800    Max.   :24857836           Max.   :15039   
##  NA's   :42       NA's   :272                                
##   fed_spending           area             density       
##  Min.   :       0   Min.   :     2.0   Min.   :    0.0  
##  1st Qu.:  102922   1st Qu.:   430.7   1st Qu.:   16.9  
##  Median :  214994   Median :   615.6   Median :   45.2  
##  Mean   :  944376   Mean   :  1123.7   Mean   :  259.3  
##  3rd Qu.:  522228   3rd Qu.:   924.0   3rd Qu.:  113.8  
##  Max.   :80457156   Max.   :145504.8   Max.   :69467.5  
##  NA's   :4

Modify the data

ccm <- countyComplete %>% 
  mutate(wc = state %in% c("Washington","Oregon","California"))

Produce a linear regression model with no more than 5 independent variables. Do not include per_capita_income.

Publish your model on Rpubs. Then submit the link in the discussion forum.

# Example

lm1 = lm(median_household_income ~ wc + persons_per_household + density + firms,data = ccm)
summary(lm1)
## 
## Call:
## lm(formula = median_household_income ~ wc + persons_per_household + 
##     density + firms, data = ccm)
## 
## Residuals:
##    Min     1Q Median     3Q    Max 
## -77387  -6928  -1392   4965  68881 
## 
## Coefficients:
##                        Estimate Std. Error t value Pr(>|t|)    
## (Intercept)           3.148e+04  2.122e+03  14.834  < 2e-16 ***
## wcTRUE                3.586e+03  1.016e+03   3.529 0.000424 ***
## persons_per_household 4.753e+03  8.419e+02   5.646  1.8e-08 ***
## density               3.785e-01  1.252e-01   3.023 0.002525 ** 
## firms                 7.906e-02  6.979e-03  11.328  < 2e-16 ***
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 11160 on 2962 degrees of freedom
##   (176 observations deleted due to missingness)
## Multiple R-squared:  0.08495,    Adjusted R-squared:  0.08372 
## F-statistic: 68.75 on 4 and 2962 DF,  p-value: < 2.2e-16