# SO5032: Lab Materials

## 1 Week 5 Lab

### 1.1 Predicting house prices

Data on house price and characteristics are available in this do file.

do http://teaching.sociology.ul.ie/so5032/labs/agrestiHousePrice.do


Using t-tests on individual parameters, and overall F-tests/adjusted R2, search for a good model to predict house price. Use dummy variables where appropriate (see note on dummy variables in Lab 4).

Are any of the explanatory variables "multi-collinear"? Note what happens to the model when you add a variable that is collinear with one already in the equation.

### 1.2 Non-linearity

#### 1.2.1 Sketch a quadratic function

Using pen and paper and/or Excel, plot the curve $$Y=20+0.75X-0.03X^2$$.

#### 1.2.2 Model a non-linear relationship

Run this do-file to load data on

do http://teaching.sociology.ul.ie/so5032/birth


Fit models predicting birth rate using GNP as

• a linear effect
• a quadratic effect (GNP plus squared GNP)
• logged GNP and
• a grouped effect.

Consider the fit of the four models.

Plot the four predicted values as lines/curves on the same graph: how do they compare? Plot the residuals as well.

Created: 2018-02-26 Mon 09:52

Emacs 26.0.50 (Org mode 8.2.10)

Validate