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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

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Exercise instructions

  • 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?

Hands-on interactive exercise

Have a go at this exercise by completing this sample code.

# Output the tidy model
Edit and Run Code