Math Linear Regression
You will choose ONE State and use its data file to predict household income (HINCP) using other variables in the data set. Your final model should have a reasonable r squared and an overall “significant” p-value. ( Do not use FINCP as a predictor! FINCP is family income and saying that we can predict a household’s income if we know the family’s income is very nearly a circular argument. For the vast majority of Americans, family income and household income are the same thing.) If any of your predictors have large p-values, be sure to justify why you are including them.
To really impress, make a prediction for a particular household with a given set of predictor variables.
Your report must include:
1) Model, including output including ANOVA and coefficient tables (5 Points).
2) 1-4 complete sentences describing your model (5 Points).
3) Graph. Remember your principles of data viz! (5 Points).
4) Comment on outliers, patterns (this exploration should also include a scatterplot matrix for your predictor variables) (5 Points).
5) R squared better than 25% (partial credit for getting close) (5 Points).
6) Describe each independent variable (what is it?) (5 Points).
7) For each independent variable, speculate on its sign (why is it positive/negative?) (5 Points).
This is the link for the data
