LA Homes, multicollinearity (3)
Now, regress the log transformed variable price
on the log transformed variables sqft
AND bath
. The model is a three dimensional linear regression model where you are predicting price
as a plane (think of a piece of paper) above the axes including both sqft
and bath
.
This exercise is part of the course
Inference for Linear Regression in R
Exercise instructions
- Run a
tidy
lm
on the log transformed variablesprice
and both ofsqft
andbath
from the datasetLAhomes
. Use the formula:log(price) ~ log(sqft) + log(bath)
. - Now look at the coefficients separately. What happened to the signs of each of the coefficients? What happened to the significance of each of the coefficients?
Hands-on interactive exercise
Have a go at this exercise by completing this sample code.
# Output the tidy model