Multiple Regression
Anil Akyildirim
11/12/2019
Question
The attached who.csv dataset contains real-world data from 2008. The variables included follow.
Country: name of the country LifeExp: average life expectancy for the country in years InfantSurvival: proportion of those surviving to one year or more Under5Survival: proportion of those surviving to five years or more TBFree: proportion of the population without TB. PropMD: proportion of the population who are MDs PropRN: proportion of the population who are RNs PersExp: mean personal expenditures on healthcare in US dollars at average exchange rate GovtExp: mean government expenditures per capita on healthcare, US dollars at average exchange rate TotExp: sum of personal and government expenditures.
Provide a scatterplot of LifeExp~TotExp, and run simple linear regression. Do not transform the variables. Provide and interpret the F statistics, R^2, standard error,and p-values only. Discuss whether the assumptions of simple linear regression met.
Raise life expectancy to the 4.6 power (i.e., LifeExp^4.6). Raise total expenditures to the 0.06 power (nearly a log transform, TotExp^.06). Plot LifeExp^4.6 as a function of TotExp^.06, and r re-run the simple regression model using the transformed variables. Provide and interpret the F statistics, R^2, standard error, and p-values. Which model is “better?”
Using the results from 3, forecast life expectancy when TotExp^.06 =1.5. Then forecast life expectancy when TotExp^.06=2.5.
Build the following multiple regression model and interpret the F Statistics, R^2, standard error, and p-values. How good is the model?
LifeExp = b0+b1 x PropMd + b2 x TotExp +b3 x PropMD x TotExp
- Forecast LifeExp when PropMD=.03 and TotExp = 14. Does this forecast seem realistic? Why or why not?
Answer
#load libraries
library(ggplot2)# load data set and review
df <- read.csv('who.csv')
head(df)## Country LifeExp InfantSurvival Under5Survival TBFree
## 1 Afghanistan 42 0.835 0.743 0.99769
## 2 Albania 71 0.985 0.983 0.99974
## 3 Algeria 71 0.967 0.962 0.99944
## 4 Andorra 82 0.997 0.996 0.99983
## 5 Angola 41 0.846 0.740 0.99656
## 6 Antigua and Barbuda 73 0.990 0.989 0.99991
## PropMD PropRN PersExp GovtExp TotExp
## 1 0.000228841 0.000572294 20 92 112
## 2 0.001143127 0.004614439 169 3128 3297
## 3 0.001060478 0.002091362 108 5184 5292
## 4 0.003297297 0.003500000 2589 169725 172314
## 5 0.000070400 0.001146162 36 1620 1656
## 6 0.000142857 0.002773810 503 12543 13046str(df)## 'data.frame': 190 obs. of 10 variables:
## $ Country : Factor w/ 190 levels "Afghanistan",..: 1 2 3 4 5 6 7 8 9 10 ...
## $ LifeExp : int 42 71 71 82 41 73 75 69 82 80 ...
## $ InfantSurvival: num 0.835 0.985 0.967 0.997 0.846 0.99 0.986 0.979 0.995 0.996 ...
## $ Under5Survival: num 0.743 0.983 0.962 0.996 0.74 0.989 0.983 0.976 0.994 0.996 ...
## $ TBFree : num 0.998 1 0.999 1 0.997 ...
## $ PropMD : num 2.29e-04 1.14e-03 1.06e-03 3.30e-03 7.04e-05 ...
## $ PropRN : num 0.000572 0.004614 0.002091 0.0035 0.001146 ...
## $ PersExp : int 20 169 108 2589 36 503 484 88 3181 3788 ...
## $ GovtExp : int 92 3128 5184 169725 1620 12543 19170 1856 187616 189354 ...
## $ TotExp : int 112 3297 5292 172314 1656 13046 19654 1944 190797 193142 ...summary(df)## Country LifeExp InfantSurvival
## Afghanistan : 1 Min. :40.00 Min. :0.8350
## Albania : 1 1st Qu.:61.25 1st Qu.:0.9433
## Algeria : 1 Median :70.00 Median :0.9785
## Andorra : 1 Mean :67.38 Mean :0.9624
## Angola : 1 3rd Qu.:75.00 3rd Qu.:0.9910
## Antigua and Barbuda: 1 Max. :83.00 Max. :0.9980
## (Other) :184
## Under5Survival TBFree PropMD PropRN
## Min. :0.7310 Min. :0.9870 Min. :0.0000196 Min. :0.0000883
## 1st Qu.:0.9253 1st Qu.:0.9969 1st Qu.:0.0002444 1st Qu.:0.0008455
## Median :0.9745 Median :0.9992 Median :0.0010474 Median :0.0027584
## Mean :0.9459 Mean :0.9980 Mean :0.0017954 Mean :0.0041336
## 3rd Qu.:0.9900 3rd Qu.:0.9998 3rd Qu.:0.0024584 3rd Qu.:0.0057164
## Max. :0.9970 Max. :1.0000 Max. :0.0351290 Max. :0.0708387
##
## PersExp GovtExp TotExp
## Min. : 3.00 Min. : 10.0 Min. : 13
## 1st Qu.: 36.25 1st Qu.: 559.5 1st Qu.: 584
## Median : 199.50 Median : 5385.0 Median : 5541
## Mean : 742.00 Mean : 40953.5 Mean : 41696
## 3rd Qu.: 515.25 3rd Qu.: 25680.2 3rd Qu.: 26331
## Max. :6350.00 Max. :476420.0 Max. :482750
## # create a scatterplot
ggplot (df, aes(x=df$LifeExp, y=df$TotExp))+
geom_point()+
geom_smooth(method = "lm", se=F)
#create simple linear regression model
linear_model <- lm(LifeExp ~ TotExp, data=df)
summary(linear_model)##
## Call:
## lm(formula = LifeExp ~ TotExp, data = df)
##
## Residuals:
## Min 1Q Median 3Q Max
## -24.764 -4.778 3.154 7.116 13.292
##
## Coefficients:
## Estimate Std. Error t value Pr(>|t|)
## (Intercept) 6.475e+01 7.535e-01 85.933 < 2e-16 ***
## TotExp 6.297e-05 7.795e-06 8.079 7.71e-14 ***
## ---
## Signif. codes: 0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
##
## Residual standard error: 9.371 on 188 degrees of freedom
## Multiple R-squared: 0.2577, Adjusted R-squared: 0.2537
## F-statistic: 65.26 on 1 and 188 DF, p-value: 7.714e-14\(LifeExp = 6.475e + (6.297e * TotExp)\)
\(p-value = 7.714e\)
The sum of personal and government expenditures are going negative when the average life expectancy for the country in years is below ~58. This is not making sense to me. The multiple R-squared is 0.2577. The p-value is really low (lower than 0.05) which stataes there is relationship between TotExp and LifeXp.
# raise life expectancy and total exp as instructed.
LifeExp_2 <- df$LifeExp^4.6
TotExp_2 <- df$TotExp^0.06# create simple linear model
linear_model_2 <- lm(LifeExp_2 ~ TotExp_2, data=df)
summary(linear_model_2)##
## Call:
## lm(formula = LifeExp_2 ~ TotExp_2, data = df)
##
## Residuals:
## Min 1Q Median 3Q Max
## -308616089 -53978977 13697187 59139231 211951764
##
## Coefficients:
## Estimate Std. Error t value Pr(>|t|)
## (Intercept) -736527910 46817945 -15.73 <2e-16 ***
## TotExp_2 620060216 27518940 22.53 <2e-16 ***
## ---
## Signif. codes: 0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
##
## Residual standard error: 90490000 on 188 degrees of freedom
## Multiple R-squared: 0.7298, Adjusted R-squared: 0.7283
## F-statistic: 507.7 on 1 and 188 DF, p-value: < 2.2e-16\(LifeExp_2 = (-)736527910 + (620060216 * TotExp_2)\)
# create a scatterplot
ggplot (df, aes(x=df$LifeExp^4.6, y=df$TotExp^0.06))+
geom_point()+
geom_smooth(method = "lm", se=F)
Based on the regression plot, the model looks better than the previous model. R squared is ~ 0.73 which is also better than ~ 0.25. p-value is lower than before , so this shows there is definately linear relationship between TotExp and LifeExp.
Life_Exp_2 <- (-736527910 + (620060216 * 1.5))^(1/4.6)
Life_Exp_2## [1] 63.31153Life_Exp_3 <- (-736527910 + (620060216 * 2.5))^(1/4.6)
Life_Exp_3## [1] 86.50645\(LifeExp = b0+b1 x PropMd + b2 x TotExp +b3 x PropMD x TotExp\)
# create multiple regression model
linear_model_3 <- lm(LifeExp ~ PropMD + TotExp + PropMD * TotExp, data=df)
summary(linear_model_3)##
## Call:
## lm(formula = LifeExp ~ PropMD + TotExp + PropMD * TotExp, data = df)
##
## Residuals:
## Min 1Q Median 3Q Max
## -27.320 -4.132 2.098 6.540 13.074
##
## Coefficients:
## Estimate Std. Error t value Pr(>|t|)
## (Intercept) 6.277e+01 7.956e-01 78.899 < 2e-16 ***
## PropMD 1.497e+03 2.788e+02 5.371 2.32e-07 ***
## TotExp 7.233e-05 8.982e-06 8.053 9.39e-14 ***
## PropMD:TotExp -6.026e-03 1.472e-03 -4.093 6.35e-05 ***
## ---
## Signif. codes: 0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
##
## Residual standard error: 8.765 on 186 degrees of freedom
## Multiple R-squared: 0.3574, Adjusted R-squared: 0.3471
## F-statistic: 34.49 on 3 and 186 DF, p-value: < 2.2e-16Multiple R square is 0.35, shows it is better than the first model but worse than the second ( raising life expectancy to the 4.6 power and total expenditures to the 0.6). p value is still low and we can confirm there is a linear relationship between TotExp and LifeExp.
PropMD <- 0.3
TotExp <- 14
b0 <- 6.277*10
b1 <- 1.497*10^3
b2 <- 7.233*10^5
b3 <- -6.026*10^-3
LifeExp <- b0+b1*PropMD+(b2*TotExp)+b3*PropMD*TotExp
LifeExp## [1] 10126712