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Regression Analysis of mtcars Dataset

The document outlines a linear regression analysis performed on the 'mtcars' dataset to predict miles per gallon (mpg) based on weight (wt) and horsepower (hp). It includes details on the regression model's coefficients, significance levels, residuals, and various statistical metrics such as R-squared and F-statistic. The results indicate that both predictors are statistically significant and the model has a good fit with an adjusted R-squared of 81.48%.
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0% found this document useful (0 votes)
17 views5 pages

Regression Analysis of mtcars Dataset

The document outlines a linear regression analysis performed on the 'mtcars' dataset to predict miles per gallon (mpg) based on weight (wt) and horsepower (hp). It includes details on the regression model's coefficients, significance levels, residuals, and various statistical metrics such as R-squared and F-statistic. The results indicate that both predictors are statistically significant and the model has a good fit with an adjusted R-squared of 81.48%.
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

# This works in any R installation without any packages

data(mtcars)
# Run regression
model <- lm(mpg ~ wt + hp, data = mtcars)
# Generate predictions and make a new column for predictions in
dataset
mtcars$predicted <- predict(model)
# Write the predictions and data to csv file
[Link](mtcars, "mtcars_with_predictions.csv", [Link] = FALSE)
# Basic output
summary(model)

Residuals:
Min 1Q Median 3Q Max
-3.941 -1.600 -0.182 1.050 5.854

Residuals are the differences between the actual observed values of


mpg and the values predicted by our model

Min/Max: The smallest and largest residuals.


1Q & 3Q (Quartiles): The 1st and 3rd quartiles. This gives you an idea
of the distribution.

What to look for: You want the median (the middle value) to be close
to zero, and the 1Q and 3Q to have roughly similar magnitudes. This
indicates a symmetric distribution of errors. In our case, the median
is -0.182, which is good.

Coefficients:
Estimate Std. Error t value Pr(>|t|)
(Intercept) 37.22727 1.59879 23.285 < 2e-16 ***
wt -3.87783 0.63273 -6.129 1.12e-06 ***
hp -0.03177 0.00903 -3.519 0.00145 **

Std. Error: The standard error tells you how much the estimated
coefficient would bounce around if you repeated the study many
times. A smaller standard error relative to the estimate generally
indicates a more precise estimate. For wt, this estimate could
reasonably be off by about ±0.63 in either direction.

t value: The test statistic for the hypothesis test that the coefficient is
different from zero (i.e., it has a significant effect). It's calculated as t
= Estimate / Std. Error.

Pr(>|t|): The p-value associated with the t-statistic.


Null Hypothesis (H₀): The coefficient is zero (the predictor has no
effect).
A small p-value (typically < 0.05) provides evidence against the null
hypothesis. We conclude that the predictor is statistically significant.
In our output, both wt and hp have very small p-values (***),
meaning they are significant predictors of mpg.

Residual Standard Error (RSE): Think of it as the average prediction


error. Lower is better. Here, the average error is about 2.6 mpg.
Degrees of Freedom (29): Calculated as n-p-1 (number of
observations - number of predictors - 1). Here: 32 cars - 2 predictors -
1 = 29.
Multiple R-squared (R²): The proportion of variance in the dependent
variable (mpg) that can be explained by the independent variables
(wt and hp). It ranges from 0 to 1.

Adjusted R-squared: Adjusts the R² for the number of predictors in


the model. This is important because adding more predictors will
always increase the R², even if they are useless. The adjusted R²
penalizes this. It's a more reliable measure for multiple regression.
Our adjusted R² is 81.48%.

F-statistic: Tests the overall significance of the model. The null


hypothesis is that all of the regression coefficients are equal to zero
(i.e., the model has no predictive power).

p-value: 9.109e-12: This is extremely small. We reject the null


hypothesis and conclude that our model (with wt and hp) is
significantly better at predicting mpg than a model with no
predictors.
Metric Formula Purpose
R-square SSres Variance explained
1−
SS tot
Adj R-square ( 1−R 2 ) ( n−1 ) Penalized variance
1−
n−p−1 explained
F-stat MS reg Overall model
MS res significance
t-stat bj Individual coefficient
SE ( b j ) significance
RSE √ MS res Average prediction
error

SSres =∑ ( y i−^y i )
2

SStot =∑ ( y i− y )
2

 yi= Actual values, ^y = Predicted values, and y is mean of


i

y (actual value)
 n = number of observations
 p = number of predictor variables
 n−p−1 = degrees of freedom for residuals
SS reg
MS reg =
p
SSreg =SStot −SS res

MS res =SS res /(n− p−1)

 bj = coefficient estimate
 SE ( b j ) = standard error of the coefficient

SS_residual <- deviance(model)


SS_total <- sum((mtcars$mpg - mean(mtcars$mpg))^2)
R-sq <- 1-(SS_residual/SS_total)

n <- nobs(model)
p <- length(coef(model)) - 1

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