Question: PLease Use R Use the data `Carseats` in the package `ISLR`. More information about the data can be found using `help(Carseats)`. ```{r} library(ISLR) data(Carseats) str(Carseats)
PLease Use R
Use the data `Carseats` in the package `ISLR`. More information about the data can be found using `help(Carseats)`.
```{r}
library(ISLR)
data(Carseats)
str(Carseats)
```
## Part (a)
Fit a multiple linear regression to predict `Sales`, using the variables `Price`, `Urban`, `US`, and `Income`.
## Part (b)
Provide an explanation of each coefficient in the model, in terms of the model; be careful -some of these are qualitative/categorical variables.
## Part (c)
At significance level of $\alpha = 0.01$, for which of these variables can you reject the null hypothesis of $H_0: \beta_0 = 0$?
What about at significance level of $\alpha = 0.05$?
## Part (d)
On the basis of your response to the previous question, fit a smaller model that only uses the predictors for which there is statistically significant evidence of association with the outcome, for signifance level $\alpha = 0.05$. (*Note: This is for testing purposes, this is __not__ how you should select variables*.)
## Part (e)
Assess and discuss how well the two models in (a) and (d) fit the data. Use any of the tools we learned in class, consider both *signifiance* and *validity*, and limit your response to a few sentences.
## Part (f)
Add an interaction term between `Price` and `US` to your reduced model from part (d). Does the model fit improve?
## Part (g)
Interpret the coefficients of `USYes` and`Price:USYes`, in terms of the model. Do not consider the improvement or lack of improvement from the last part.
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