Question

The Data Collection: On May 18"\Part 2. {5 points) Model Evaluation. :1. The model that uses all of the explanatory variables to predict monthly rents is the \"full model\". Fit the full model in R. 0 (0.5 points) Paste the R output for the full model. 0 (1 point) State the least squares regression equation of Full Model. 0 (0.5 points) State the adjusted R-Squared value. b. The nal model from basic model selection techniques includes the variables rooms, baths, sqrfoot. campusclose and new. Fit the nal model with these variables in R. Hint: Just remove the other variables from the model in R. I! (0.5 points) Paste the R output for the nal model. 0 (1 point) State the least squares regression equation of the Final Model. 0 (0.5 points) State the adjusted R-Squared value. c. Compare the adjusted R squared values from the full model to nal model. i (0.5 points) Is there much of a difference? 0 (0.5 points) What does this comparison tell us about the t of two models? Part 3. {7 Points) Model interpretation. a. Interpret the coefcient of number of rooms while keeping the other variables constant. 0 (1.5 points) Calculate the 95% condence interval for mam. Show work or paste R Output. Ir (2 points) Interpret the point estimate and interval in context. b. Interpret the coefficient of the variable new while keeping the other variables constant. 0 (1.5 points) Calculate the 95% condence interval for mw. Show work or paste R Output. Ir (2 points) Interpret the point estimate and interval in context. Part 4. {5 points) Prediction. a. (2 points) Use the least squares regression equation to predict the monthly rent for :1 78C! sq. foot house, close to campus with two bedrooms and one bathroom, which does not allow pets and is not new. Note: Youraal model does not have all these variables. Show work or paste R Output! b. (1 point) The actual rent of the listing above is $1 150. How far off is the nal model at predicting the rent for this listing? In other words, calculate the residual. Show work. c. (2 points} Based on the analysis of the data, is $1150 a reasonable amount to ask for this dwelling? Specically, what procedure might you use to come to this conclusion