lecture23 - LECTURE XXIII STAT 515 University of South...

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Unformatted text preview: LECTURE XXIII STAT 515 April 14, 2010 University of South Carolina Lecture 23 p.1 Antique Clock Auction A collector of antique grandfather clocks sold at auction believes that the price received for the clocks depends on both the age of the clocks and the number of bidders at the auction. Thus, he hypothesizes the first -order model y = + 1 x 1 + 2 x 2 + where y = Auction price (dollars), x 1 = Age of clock(years), x 2 = Number of bidders. A sample of 32 auction prices of grandfather clocks, along with their age and the number of bidders, is given in the excel file. Lecture 23 p.2 Complete second-order model In multiple regression analysis, the goal is to find the best model. There is a big literature, called model selection. For a model with two predictors, statisticians tend to start with the following more complex model y = + 1 x 1 + 2 x 2 + 3 x 1 x 2 + 4 x 2 1 + 5 x 2 2 + and then try to do the pruning, make the model parsimonious. Lecture 23 p.3 Fitted second-order model lm(formula = Price ~ Age + Bidders + Age * Bidders + Age2 + Bidders2) Coefficients: Estimate Std. Error t value Pr(>|t|) (Intercept) -3.319e+02 7.649e+02-0.434 0.6679 Age 3.208e+00 8.947e+00 0.359 0.7228 Bidders 1.481e+01 6.221e+01 0.238 0.8137 Age2-2.995e-03 2.748e-02-0.109 0.9140 Bidders2-4.179e+00 2.145e+002....
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This note was uploaded on 06/06/2011 for the course STAT 515 taught by Professor Zhao during the Spring '10 term at South Carolina.

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lecture23 - LECTURE XXIII STAT 515 University of South...

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