Question

R programming:

Part 1 (a) Develop a simple linear regression model based on least squares that directly predicts Price from Size (that is, do not transform either the predictor nor the response variable). Ensure that you peovide justification for your choice of model. (b) Describe any weaknesses in your model. Part 2 (a) Develop a simple linear regression model that predicts Price from Size (i.e. feel free to transform either the predictor or the response variable or both variables). Ensure that you provide detailed justification for your choice of model. (b) Describe any weaknesses in your model. Part 3 Compare the model in Part A with that in Part B. Decide which provides a better model. Give reasons to justify your choice.

Size   Price
0.17   355
0.16   328
0.17   350
0.18   325
0.25   642
0.16   342
0.15   322
0.19   485
0.21   483
0.15   323
0.18   462
0.28   823
0.16   336
0.2   498
0.23   595
0.29   860
0.12   223
0.26   663
0.25   750
0.27   720
0.18   468
0.16   345
0.17   352
0.16   332
0.17   353
0.18   438
0.17   318
0.18   419
0.17   346
0.15   315
0.17   350
0.32   918
0.32   919
0.15   298
0.16   339
0.16   338
0.23   595
0.23   553
0.17   345
0.33   945
0.25   655
0.35   1086
0.18   443
0.25   678
0.25   675
0.15   287
0.26   693
0.15   316
0.15   316

Answer 1