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STEP 2 MODEL 2 Best Model Using Transformation, Interaction etc. Use the Original Predictors and the enriched predictor variables to build the Model. (I have

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STEP 2 MODEL 2 Best Model Using Transformation, Interaction etc. Use the Original Predictors and the enriched predictor variables to build the Model. (I have created enriched predictor variables from the existing predictor variables using Transformation, Interaction techniques etc., to help you build the best model.) Build your best Model with relatively high predictive power and justify it. (You need to use Stepwise method and your domain expertise to build the model) Y= Sale Price a. What is the estimated regression equation? b. Provide the predictive power of the model and the standard error of estimate. c. Does this multiple regression model seem useful? Support your answer and where appropriate use a significance level of 5%. d. Examine each of the predictor variables individually to determine which are contributing significantly to the model. Which predictor variables would you recommend keeping in the model? Use a significance level of 5%. e. Is multicolh'nearity a problem? Support your answer.(hint: calculate VIF using JMP)

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