UCLA Strong Negative Linear Regression Worksheet

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University of California - Los Angeles

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1. [4 points] Descriptive analysis

a. Describe the summary statistics of all variables except zip

b. Generate two-way plots (i.e., plot of two variables) for all variables except

location and zip. Do you observe any patterns?

2. [4 points] Simple linear regression

a. Perform a regression of q_sold on ave_p. Is there any relationship between

q_sold and ave_p?

b. Discuss the fit of the model using R_squared

3. [6 points] Multiple linear regression

a. Perform a multiple regression of q_sold on ave_p, adv, and comp_p. Is

there any relationship between q_sold and controls: ave_p, adv, and

comp_p? Are the signs of the estimated parameters reasonable?

b. Discuss the model fit using R_squared

4. [6 points] If you are a data analyst for this company, which variables would you

suggest to add in the last estimation equation (i.e., multiple regression) to make

more precise argument regarding the effect of price on unit sold? These variables

you will propose to add may not currently be in your data. Which variables would

you suggest to add and why? You can think of this question as proposing a “wish

list.” We may not always have access to the variables we wish, but we can always

keep a lookout for them.

https://drive.google.com/file/d/19lFpDXA7iLf69N7AA...

Unformatted Attachment Preview

Location Zip q_sold ave_p comp_p adv Ann Arbor, MI 48104 55 18.28 23.17 Westerville, OH43231 54 18.99 19.57 Evanston, IL 60202 23 20.97 20.91 Baton Rouge, LA70803 38 20.13 19.95 Los Angeles, CA90048 28 18.99 20.79 Marietta, GA 30064 47 18.36 19.45 Davis, CA 95616 35 19.58 21.46 Gainesville, FL 32611 37 20.81 21.17 Berkeley, CA 94720 33 19.55 19.17 Des Moines, IA 50311 35 19.87 20.64 Denver, CO 80231 30 22.5 20.25 Wheaton, MD 20902 41 20.02 19.84 Santa Barbara, CA 93106 2 22.45 22.89 Cincinnati, OH 45244 51 18.55 19.03 Water Mill, NY 11976 7 23.06 23.61 Minneapolis, MN 55416 45 19.19 19.53 Irvine, CA 92717 20 20.25 21.07 Park Ridge, IL 60068 24 20.91 18.57 Philadelphia, PA19104 25 21.67 19.77 San Francisco, CA 94102 12 20.44 20.61 Chicago, IL 60640 31 20.55 20.12 Chicago, IL 60637 29 20.45 20.44 Nashville, TN 37203 26 20.31 19.05 Canoga Park, CA91306 31 19.76 20.52 Baltimore, MD 21218 27 20.91 19.75 Rutherford, NJ 7070 25 20.06 21.84 Plymouth, MN 55441 44 19.52 19.77 Portland, OR 97219 34 20.34 20.21 Jacksonville, FL 32201 24 21.44 19.85 Tucson, AZ 85721 39 18.66 18.77 New Haven, CT 6520 26 20.17 21.54 Holland, MI 49423 45 18.55 20.18 Bloomington, IN47405 42 19.31 20.15 Provo, UT 84602 33 21.11 20.66 Clemson, SC 29631 35 21.01 21.13 Ithaca, NY 14853 28 19.27 21.19 Wilmington, DE 19880 48 17.56 19.13 Boston, MA 2116 14 22.03 20.04 Buffalo Grove, IL60089 49 18.22 19.05 St. Louis, MO 63130 51 17.39 19.34 Winston-Salem,27109 NC 29 19.75 20.19 Atlanta, GA 30322 35 20.57 20.53 New Rochelle, NY 10801 21 21.02 21.87 College Station, 77843 TX 37 19.51 18.95 1.39 4.87 3.81 2.64 0.22 3.75 0.3 0.67 0.33 5.19 3.77 4.91 0.88 3.75 3.88 4.66 0.63 4.68 0.53 1.27 0.93 0.83 0.12 0.31 0.57 4.37 3.73 4.38 0.46 3.13 0.95 0.97 2.01 0.68 2.54 0.96 4.13 0.51 4.39 4.95 1.95 1.08 3.88 1.21
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I was struggling with this subject, and this helped me a ton!

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