Question: Using the same Credit dataset in the ISLR package with Balance as your dependent variable and Income, Rating, and Age as your independent variable, create

Using the same Credit dataset in the ISLR package with Balance as your dependent variable and Income, Rating, and Age as your independent variable, create a linear-linear, log-linear, linear-log, and log-log model. Based on the R-Squared, which model has the best performance? Note: 1) Balance contains 0's and a 1 needs to be added to the column before you can perform the log transformation (i.e. log(x 1)). 2) For both log-log and linear-log models, simply take the log of each independent variable, like log(X1), log(X2), and log (X3)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!