Appendix

INPUT
setwd("C:\\Users\\user\\Desktop")
model.dat<-read.table("haha.txt",header=TRUE)
model.dat
model.reg<lm(Y~X1+X2+X3+X4+X5+X6+X7+X8+X9+X10,data=model.dat)
summary(model.reg)

OUTPUT
Y X1 X2 X3 X4 X5 X6 X7 X8 X9 X10
1 650000 1.0 3150 2 5 4 2.50 0.64 1.40 0.22 0.5
2 1100000 1.0 2380 2 8 3 1.08 0.66 1.32 0.12 0.5
3 850000 2.0 2380 2 4 3 2.04 0.55 0.89 0.29 0.0
4 898000 2.0 1400 1 4 3 1.02 2.00 2.40 0.86 0.5
5 618000 1.0 1400 1 3 2 1.08 0.66 1.32 0.12 0.5
6 1260000 2.0 2380 2 6 4 1.05 0.33 2.15 0.72 1.0
7 560000 2.0 880 2 5 3 2.00 0.12 0.41 0.50 0.5
8 380000 2.0 1540 2 5 5 4.31 0.73 1.44 1.04 0.5
9 750000 2.0 1760 2 4 3 1.08 0.66 1.32 0.12 0.5
10 1250000 2.5 1650 2 6 4 1.08 0.66 1.32 0.12 0.5
11 800000 1.0 2700 2 4 4 0.59 0.94 0.70 0.30 0.5
12 650000 1.0 3150 2 5 4 1.62 0.58 0.85 0.30 0.5
13 830000 1.5 1870 2 4 3 1.62 0.05 0.43 0.35 0.5
14 560000 1.0 1200 1 3 1 3.51 0.26 0.40 0.31 0.5
15 1500000 2.5 3300 1 6 5 1.08 0.66 1.32 0.12 0.5
16 660000 1.0 1540 1 3 2 1.08 0.66 1.32 0.12 0.0

17 2400000 2.0 3000 2 19 4 2.55 0.48 1.32 0.03 0.5

18 1150000 2.5 1650 2 5 4 0.96 0.31 1.11 0.17 0.5
19 925000 2.0 2460 2 4 3 2.10 1.91 0.77 1.80 0.5
20 610000 1.0 3000 2 6 3 0.47 0.74 0.96 0.78 0.5
21 900000 2.0 1400 1 4 3 0.80 1.81 0.94 2.30 0.5
22 550000 1.0 3300 2 4 2 0.50 1.40 2.10 0.47 0.5
23 418000 2.5 700 1 3 3 0.05 0.63 0.46 0.56 0.5
24 1990000 3.0 2880 2 6 6 0.80 0.78 1.20 1.70 0.5
25 480000 1.0 1470 2 3 2 0.05 0.38 0.35 2.40 0.5
26 1300000 1.0 3200 1 3 2 0.05 0.38 0.35 0.40 0.5
27 450000 1.0 1430 2 3 2 0.05 0.38 0.35 0.70 0.5
28 835000 1.0 1760 2 3 2 1.00 0.20 1.12 0.70 0.0
29 1200000 1.0 3525 1 3 2 1.00 0.20 1.12 0.60 0.5
30 690000 1.0 1760 2 3 2 1.66 0.71 1.41 0.14 0.5
31 640000 1.0 1430 1 3 2 0.05 0.35 0.46 0.59 0.5
32 630000 1.0 1650 2 3 2 0.43 0.52 0.89 0.42 0.5
33 880000 2.0 1760 2 4 3 0.32 0.70 1.40 2.50 0.5
34 340000 2.0 658 1 2 2 1.40 1.80 0.20 2.60 0.5
35 1380000 0.0 2262 1 4 4 0.82 0.69 0.50 0.38 1.0
36 500000 1.0 1438 2 3 2 0.43 0.52 0.82 0.42 0.5
37 598000 1.0 1438 1 3 2 0.60 0.80 0.30 0.50 0.5
38 715000 1.0 1438 1 3 2 0.46 0.59 0.90 1.40 0.5
39 650000 1.0 1560 2 3 2 1.07 0.30 1.23 2.50 0.5
40 390000 1.0 1438 1 3 2 0.43 0.52 0.82 0.42 0.5
41 1750000 2.0 3150 1 5 4 0.43 0.52 0.82 0.42 0.5
42 418000 2.5 770 2 3 2 0.43 0.52 0.82 0.42 0.5

43 550000 2.0 1375 1 3 2 0.43 0.52 0.82 0.42 0.5

44 930000 1.5 1650 1 3 3 0.79 0.34 1.12 0.35 1.0
45 500000 1.0 1430 2 3 2 1.13 0.13 0.89 0.23 0.0
46 2180000 3.0 3300 1 6 5 1.03 0.79 1.23 0.20 1.0
47 1000000 2.5 1650 2 6 5 2.06 0.94 1.11 0.23 0.0
48 660000 1.0 1300 1 3 2 1.00 0.57 0.78 0.24 0.5
49 780000 1.0 1300 2 3 2 1.08 0.66 1.32 0.12 0.5
50 600000 1.0 1300 1 3 2 0.43 0.52 0.82 0.42 0.5
51 675000 1.0 1300 1 3 2 0.43 0.52 0.82 0.42 0.5
52 910000 2.0 1600 1 4 3 0.43 0.52 0.82 0.42 0.5
53 1390000 2.0 1600 1 4 3 0.43 0.52 0.82 0.42 0.5
54 435000 3.0 630 1 3 2 0.43 0.52 0.82 0.42 0.0
55 2280000 3.0 3220 1 7 6 0.30 0.67 0.98 1.60 0.5
56 465000 2.5 658 2 3 3 0.56 0.78 1.50 0.60 0.5
57 1080000 2.0 1400 1 3 3 0.43 0.52 0.82 0.42 0.0
58 599000 2.0 960 1 3 2 0.43 0.52 0.82 0.42 1.0
59 498000 1.0 1650 2 3 2 0.43 0.52 0.82 0.42 0.5
60 550000 2.0 880 2 3 2 0.05 0.43 0.35 0.78 1.0
61 658000 1.5 1430 1 4 2 0.05 0.43 0.35 0.45 0.5
62 1200000 2.0 1760 2 3 4 0.12 0.17 0.18 2.10 1.0
63 655000 1.0 1760 2 3 2 0.13 0.36 0.28 0.50 0.5
64 770000 1.0 1540 1 3 2 2.50 1.78 1.40 0.70 0.5
65 500000 3.0 840 2 3 3 1.55 0.53 0.48 2.30 0.5

Call:
lm(formula = Y ~ X1 + X2 + X3 + X4 + X5 + X6 + X7 + X8 + X9 +

X10, data = model.dat)

Residuals:
Min

1Q Median

-532028 -101390

3Q

Max

2596 135809 427012

Coefficients:
Estimate Std. Error t value Pr(>|t|)
(Intercept) 79525.93 156095.35 0.509 0.61250
X1
X2

99512.34 59918.18 1.661 0.10255

220.92

53.87 4.101 0.00014 ***

X3

-262283.09 63980.86 -4.099 0.00014 ***

X4

83774.21 16884.73 4.962 7.34e-06 ***

X5

109262.42 45492.11 2.402 0.01979 *

X6

-67520.15 39347.29 -1.716 0.09189 .

X7

-130055.64 84225.01 -1.544 0.12839

X8

31032.78 75666.86 0.410 0.68334

X9

50432.54 49294.02 1.023 0.31082

X10

106441.45 130001.33 0.819 0.41652

--Signif. codes: 0 *** 0.001 ** 0.01 * 0.05 . 0.1 1

Residual standard error: 230400 on 54 degrees of freedom

Multiple R-squared: 0.7909,

Adjusted R-squared: 0.7522

F-statistic: 20.43 on 10 and 54 DF, p-value: 5.681e-15

The fitted regression equation is
= 79525.93 + 99512.34X1 + 220.92X2 262283.09X3 + 83774.21X4
+ 109262.42X5 67520.15X6 - 130055.64X7 + 31032.78X8 + 50432.54X9
+ 106441.45X10

Non-linearity of Regression Model

Residual VS Built-Up Area
model.reg<-lm(Y~X2,data=model.dat)
plot(x=model.dat$X2, y=model.reg$residuals, xlab = "Built-Up Area", ylab =
"Residuals", main="Residuals vs. Built-Up Area", col = "red", pch =
19,cex=1.5,panel.first=grid(col="gray",lty="dotted"))
abline(h=0,col="blue")

Residual VS Bedrooms
model.reg<-lm(Y~X4,data=model.dat)
plot(x=model.dat$X4, y=model.reg$residuals, xlab = "Bedrooms", ylab =
"Residuals", main="Residuals vs. Bedrooms", col = "red", pch =
19,cex=1.5,panel.first=grid(col="gray",lty="dotted"))
abline(h=0,col="blue")

Nonconstancy of Error Variance

Residual VS Built-Up Area
model.reg<-lm(Y~X2,data=model.dat)
plot(x=model.reg$fitted.values, y=model.reg$residuals, xlab = "Built-Up
Area", ylab = "Residuals", main="Residuals vs. Predicted Values", col = "red",
pch = 19,cex=1.5,panel.first=grid(col="gray",lty="dotted"))
abline(h=0,col="blue")

Residual VS Bedrooms
model.reg<-lm(Y~X4,data=model.dat)
plot(x=model.reg$fitted.values, y=model.reg$residuals, xlab = "Bedrooms",
ylab = "Residuals", main="Residuals vs. Predicted Values", col = "red", pch =
19,cex=1.5,panel.first=grid(col="gray",lty="dotted"))
abline(h=0,col="blue")

Normal Probability Plot

Price vs Built-Up Area
model.reg<-lm(Y~X2,data=model.dat)
qqplot<-qqnorm(model.reg$residuals,main="Normal Probability
Plot",xlab="Built-up Area",ylab="Price",plot.it=TRUE ,col="blue", pch=19,
cex=1.5,panelfirst=grid(col="gray",lty="dotted"))
abline(lm(qqplot$y~qqplot$x))

Price vs Bedrooms
model.reg<-lm(Y~X4,data=model.dat)
qqplot<-qqnorm(model.reg$residuals,main="Normal Probability
Plot",xlab="Bedrooms",ylab="Price",plot.it=TRUE ,col="blue", pch=19,
cex=1.5,panelfirst=grid(col="gray",lty="dotted"))
abline(lm(qqplot$y~qqplot$x))

Coefficient of Determination
INPUT
setwd("C:\\Users\\user\\Desktop")
model.dat<-read.table("haha.txt",header=TRUE)
model.reg<lm(Y~X1+X2+X3+X4+X5+X6+X7+X8+X9+X10,data=model.dat)
sum.reg<-summary(model.reg)
model1.reg<-lm(Y~X1,data=model.dat)
sum1.reg<-summary(model1.reg)
model2.reg<-lm(Y~X1+X2,data=model.dat)
sum2.reg<-summary(model2.reg)
model3.reg<-lm(Y~X1+X2+X3,data=model.dat)
sum3.reg<-summary(model3.reg)
model4.reg<-lm(Y~X1+X2+X3+X4,data=model.dat)
sum4.reg<-summary(model4.reg)
model5.reg<-lm(Y~X1+X2+X3+X4+X5,data=model.dat)
sum5.reg<-summary(model5.reg)

model6.reg<-lm(Y~X1+X2+X3+X4+X5+X6,data=model.dat)
sum6.reg<-summary(model6.reg)
model7.reg<-lm(Y~X1+X2+X3+X4+X5+X6+X7,data=model.dat)
sum7.reg<-summary(model7.reg)
model8.reg<-lm(Y~X1+X2+X3+X4+X5+X6+X7+X8,data=model.dat)
sum8.reg<-summary(model8.reg)
model9.reg<-lm(Y~X1+X2+X3+X4+X5+X6+X7+X8+X9,data=model.dat)
sum9.reg<-summary(model9.reg)

R.sq.value<- data.frame(model=c("x1","x1, x2","x1, x2, x3","x1, x2, x3, x4",

"x1, x2, x3,
x4,x5","x1,x2,x3,x4,x5,x6","x1,x2,x3,x4,x5,x6,x7","x1,x2,x3,x4,x5,x6,x7,x8","
x1,x2,x3,x4,x5,x6,x7,x8,x9","x1,x2,x3,x4,x5,x6,x7,x8,x9,x10"),R.sq=c(sum1.r
eg$r.squared,sum2.reg$r.squared,sum3.reg$r.squared,sum4.reg$r.squared,su
m5.reg$r.squared,sum6.reg$r.squared,sum7.reg$r.squared,sum8.reg$r.squar
ed,sum9.reg$r.squared,sum.reg$r.squared),adj.R.sq=c(sum1.reg$adj.r.square
d,sum2.reg$adj.r.squared,sum3.reg$adj.r.squared,sum4.reg$adj.r.squared,su
m5.reg$adj.r.squared,sum6.reg$adj.r.squared,sum7.reg$adj.r.squared,sum8.r
eg$adj.r.squared,sum9.reg$adj.r.squared,sum.reg$adj.r.squared))
R.sq.value
summary(model7.reg)

OUTPUT
model
1
2
3

x1
x1, x2
x1, x2, x3

R.sq

adj.R.sq

0.1331626

0.1194033

0.5943963

0.5813123

0.6297972

0.6115905

x1, x2, x3, x4

0.7343859

0.7166783

x1, x2, x3, x4,x5

0.7551079

0.7343543

x1,x2,x3,x4,x5,x6

0.7769258

0.7538492

x1,x2,x3,x4,x5,x6,x7

0.7831864

x1,x2,x3,x4,x5,x6,x7,x8

0.7832118 0.7522420

x1,x2,x3,x4,x5,x6,x7,x8,x9

0.7883409

10 x1,x2,x3,x4,x5,x6,x7,x8,x9,x10

0.7909363

0.7565602

0.7537057

0.7522208

Call:
lm(formula = Y ~ X1 + X2 + X3 + X4 + X5 + X6 + X7, data = model.dat)

Residuals:
Min

1Q Median

3Q

Max

-534969 -81367 13282 156080 410508

Coefficients:
Estimate Std. Error t value Pr(>|t|)
(Intercept) 139279.00 138479.11 1.006 0.318774
X1
X2

102055.71 57921.39 1.762 0.083437 .

218.51

52.48 4.164 0.000107 ***

X3

-247709.72 60273.66 -4.110 0.000128 ***

X4

81540.08 16412.54 4.968 6.5e-06 ***

X5

119661.49 44113.46 2.713 0.008811 **

X6

-77243.87 37898.25 -2.038 0.046180 *

X7

-92439.26 72053.61 -1.283 0.204711

--Signif. codes: 0 *** 0.001 ** 0.01 * 0.05 . 0.1 1

Residual standard error: 228400 on 57 degrees of freedom

Multiple R-squared: 0.7832,

Adjusted R-squared: 0.7566

F-statistic: 29.41 on 7 and 57 DF, p-value: < 2.2e-16