Exercise

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.

Instructions

100 XP

Run a tidy lm on the log transformed variables price and both of sqft and bath from the dataset LAhomes. 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?

Take Hint (-30 XP)