AppEx 16: Ames housing prices

library(tidyverse)
library(openintro)
data("ames")

Introduction and Data

The ames data set contains information about homes sold in Ames, Iowa from 2006 to 2010. The data is provided as part of the openintro package. We will focus today on two variables:

• price: sale price in USD
• area: Above grade (ground) living area square feet

We will fit a linear regression model, assess the conditions using diagnostic plots, and examine how well our model fits the data

Exercise 1

Fit a linear model to predict the price of a home in Ames using its area.

Exercise 2

augment() your model to obtain the fitted and residual values, and store this augmented model into a new variable.

Exercise 3

Using appropriate diagnostic plots, determine if the conditions of linearity and normality are met.

Exercise 4

Obtain the \(R^2\) of your model. Interpret it!