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Exercise

Different levels of interaction

Once you have three explanatory variables, the number of options for specifying interactions increases. You can specify no interactions. You can specify 2-way interactions, which gives you model coefficients for each pair of variables. The third option is to specify all the interactions, which means the three 2-way interactions and and interaction between all three explanatory variables.

As the number of explanatory variables increases further, the number of interaction possibilities rapidly increases.

taiwan_real_estate is available.

Instructions 1/3
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  • 1

    Fit a linear regression of house price versus n_convenience, the square-root of dist_to_mrt_m, and house_age_years. Don't include a global intercept, and don't include any interactions.

  • 2

    Fit a linear regression of house price versus the square-root of dist_to_mrt_m, n_convenience, and house_age_years. Don't include a global intercept, but do include 2-way and 3-way interactions between the explanatory variables.

  • 3

    Fit a linear regression of house price versus the square-root of dist_to_mrt_m, n_convenience, and house_age_years. Don't include a global intercept, but do include 2-way (not 3-way) interactions between the explanatory variables.

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