* Condo Example See pages 447 to 465 of the Mendenhall and Sincich textbook. Examine 4 regression models for predicting sale prices of condo units at auction; condo <- read.table("c:/datasets/condo.txt", header=T, sep="\t") print(condo) # car package is needed for anova function. library(car) model1 <- lm(PRICE100 ~ FLOOR + DIST + VIEW + END + FURNISH, data=condo) summary(model1) anova(model1) # Define full quadratic terms. FLOORSQ <- condo$FLOOR * condo$FLOOR DISTSQ <- condo$DIST * condo$DIST FLR_DST <- condo$FLOOR * condo$DIST model2 <- lm(PRICE100 ~ FLOOR + DIST + VIEW + END + FURNISH + FLOORSQ + DISTSQ + FLR_DST, data=condo) summary(model2) anova(model2) # anova(model2, model1) # Define interactions with VIEW VIEW_FLOOR <- condo$VIEW * condo$FLOOR VIEW_DIST <- condo$VIEW * condo$DIST VIEW_FLOORSQ <- condo$VIEW * FLOORSQ VIEW_DISTSQ <- condo$VIEW * DISTSQ VIEW_FLR_DST <- condo$VIEW * FLR_DST model3 <- lm(PRICE100 ~ FLOOR + DIST + VIEW + END + FURNISH + FLOORSQ + DISTSQ + FLR_DST + VIEW_FLOOR + VIEW_DIST + VIEW_FLOORSQ + VIEW_DISTSQ + VIEW_FLR_DST, data=condo) summary(model3) anova(model3) anova(model3, model2) FLOOR_FACT <- as.factor(condo$FLOOR) model4 <- lm(PRICE100 ~ FLOOR_FACT + DIST + DISTSQ + FLOOR_FACT*DIST + VIEW + END + FURNISH + FLOOR_FACT*VIEW + VIEW_DIST + VIEW_DISTSQ + FLOOR_FACT*DISTSQ + FLOOR_FACT*VIEW_DIST, data=condo) summary(model4) anova(model4) anova(model4, model3)