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    Mtcars Dataset Analysis in R

    Uploaded by

    Farhan Shariar
    The document provides instructions for completing a term paper analyzing the "mtcars" data set using econometric modeling techniques in R. It outlines performing exploratory data analysis, estimating a regression model, checking the initial model fit, diagnosing the model, and reporting the final best-fitted model that meets all requirements. The student is asked to address issues like normality, heteroscedasticity, multicollinearity, and autocorrelation and provide R code for the entire analysis.

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    Mtcars Dataset Analysis in R

    Uploaded by

    Farhan Shariar
    459 views4 pages
    The document provides instructions for completing a term paper analyzing the "mtcars" data set using econometric modeling techniques in R. It outlines performing exploratory data analysis, estimating a regression model, checking the initial model fit, diagnosing the model, and reporting the final best-fitted model that meets all requirements. The student is asked to address issues like normality, heteroscedasticity, multicollinearity, and autocorrelation and provide R code for the entire analysis.

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    mtcars Dataset Analysis in R

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    The document provides instructions for completing a term paper analyzing the "mtcars" data set using econometric modeling techniques in R. It outlines performing exploratory data analysis, estimating a regression model, checking the initial model fit, diagnosing the model, and reporting the final best-fitted model that meets all requirements. The student is asked to address issues like normality, heteroscedasticity, multicollinearity, and autocorrelation and provide R code for the entire analysis.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    459 views4 pages

    Mtcars Dataset Analysis in R

    Uploaded by

    Farhan Shariar
    The document provides instructions for completing a term paper analyzing the "mtcars" data set using econometric modeling techniques in R. It outlines performing exploratory data analysis, estimating a regression model, checking the initial model fit, diagnosing the model, and reporting the final best-fitted model that meets all requirements. The student is asked to address issues like normality, heteroscedasticity, multicollinearity, and autocorrelation and provide R code for the entire analysis.

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    © All Rights Reserved
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    At a glance
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    The document discusses building an econometric model using the mtcars data set and addressing issues like exploratory data analysis, model estimation, fit checking, and diagnostic testing.

    The mtcars data set from the car package in R is being used for analysis. It contains fuel consumption and vehicle characteristics for 32 cars.

    Steps involved include exploratory data analysis, population model writing, parameter estimation, fit checking using ANOVA and significance tests, goodness of fit checking using R-squared, and ensuring diagnostics like linearity, normality, autocorrelation, multicollinearity and homoscedasticity.

    Term Paper on Econometrics

    Use the “mtcars” data set under “car” package for analysis.

    Build an Econometric Model on that you have confidence that it can be used for prediction purpose. In
    the process of building the model the following issues are expected to be addressed.

    Before analysis

    1. Do an Exploratory Data Analysis

    Estimation Stage

    1. Write the population regression model


    2. Estimate the parameters of the regression model
    3. Estimate the Confidence Interval of the parameters

    Check the Initial Fit of the Model

    1. Find the ANOVA


    2. Test the overall significance of the model
    3. Test the significance of the parameters

    Check the Goodness of Fit of the Model

    1. Find R-square value and comment the R-square value


    2. Find Adjusted R-square and comment

    Diagnostic Measures to confirm that your model comply with;

    1. Linearity
    2. Normality
    3. Free from Autocorrelation
    4. Absence of Multicollinearity
    5. Homoscedastic error variance

    Finally, give the best fitted model that fulfills all the requirements.

    Note: Give the R codes that you used to analyze data in the Report

    Data File

    The data was extracted from the 1974 Motor Trend US magazine, and comprises fuel
    consumption and 10 aspects of automobile design and performance for 32 automobiles
    (1973–74 models).
    A data frame with 32 observations on 11 variables.
    [, 1] mpg Miles/(US) gallon
    [, 2] cyl Number of cylinders
    [, 3] disp Displacement (cu.in.)
    [, 4] hp Gross horsepower
    [, 5] drat Rear axle ratio
    [, 6] wt Weight (1000 lbs)
    [, 7] qsec 1/4 mile time
    [, 8] vs V/S
    [, 9] am Transmission (0 = automatic, 1 = manual)
    [,10] gear Number of forward gears
    [,11] carb Number of carburetors

    mpg cyl disp hp drat wt qsec vs am gear carb


    Mazda RX4 21.0 6 160.0 110 3.90 2.620 16.46 0 1 4 4
    Mazda RX4 Wag 21.0 6 160.0 110 3.90 2.875 17.02 0 1 4 4
    Datsun 710 22.8 4 108.0 93 3.85 2.320 18.61 1 1 4 1
    Hornet 4 Drive 21.4 6 258.0 110 3.08 3.215 19.44 1 0 3 1
    Hornet Sportabout 18.7 8 360.0 175 3.15 3.440 17.02 0 0 3 2
    Valiant 18.1 6 225.0 105 2.76 3.460 20.22 1 0 3 1
    Duster 360 14.3 8 360.0 245 3.21 3.570 15.84 0 0 3 4
    Merc 240D 24.4 4 146.7 62 3.69 3.190 20.00 1 0 4 2
    Merc 230 22.8 4 140.8 95 3.92 3.150 22.90 1 0 4 2
    Merc 280 19.2 6 167.6 123 3.92 3.440 18.30 1 0 4 4
    Merc 280C 17.8 6 167.6 123 3.92 3.440 18.90 1 0 4 4
    Merc 450SE 16.4 8 275.8 180 3.07 4.070 17.40 0 0 3 3
    Merc 450SL 17.3 8 275.8 180 3.07 3.730 17.60 0 0 3 3
    Merc 450SLC 15.2 8 275.8 180 3.07 3.780 18.00 0 0 3 3
    Cadillac Fleetwood 10.4 8 472.0 205 2.93 5.250 17.98 0 0 3 4
    Lincoln Continental 10.4 8 460.0 215 3.00 5.424 17.82 0 0 3 4
    Chrysler Imperial 14.7 8 440.0 230 3.23 5.345 17.42 0 0 3 4
    Fiat 128 32.4 4 78.7 66 4.08 2.200 19.47 1 1 4 1
    Honda Civic 30.4 4 75.7 52 4.93 1.615 18.52 1 1 4 2
    Toyota Corolla 33.9 4 71.1 65 4.22 1.835 19.90 1 1 4 1
    Toyota Corona 21.5 4 120.1 97 3.70 2.465 20.01 1 0 3 1
    Dodge Challenger 15.5 8 318.0 150 2.76 3.520 16.87 0 0 3 2
    AMC Javelin 15.2 8 304.0 150 3.15 3.435 17.30 0 0 3 2
    Camaro Z28 13.3 8 350.0 245 3.73 3.840 15.41 0 0 3 4
    Pontiac Firebird 19.2 8 400.0 175 3.08 3.845 17.05 0 0 3 2
    Fiat X1-9 27.3 4 79.0 66 4.08 1.935 18.90 1 1 4 1
    Porsche 914-2 26.0 4 120.3 91 4.43 2.140 16.70 0 1 5 2
    Lotus Europa 30.4 4 95.1 113 3.77 1.513 16.90 1 1 5 2
    Ford Pantera L 15.8 8 351.0 264 4.22 3.170 14.50 0 1 5 4
    Ferrari Dino 19.7 6 145.0 175 3.62 2.770 15.50 0 1 5 6
    Maserati Bora 15.0 8 301.0 335 3.54 3.570 14.60 0 1 5 8
    Volvo 142E 21.4 4 121.0 109 4.11 2.780 18.60 1 1 4 2

    The proposed regression function to be built


    Group 1: mpg = f(disp,hp, gear ) Group 3: mpg = f(wt ,drat, gear )
    Group 2: mpg = f(wt ,drat, carb) Group 4: mpg = f(wt , qsec, carb)
    Group 5: mpg = f(wt ,drat, qsec, hp)

    Date of Submission: April 10, 2017


    R Code for Term Paper Problem Solution
    Just run the following R codes. While installing the package, it may take few moments to install.
    Please wait till it is showing the package is unpacked or installed.

    Installing the Package


    install.packages("car") # to install the package
    library(car) # for functional the package

    Getting the Data


    data(mtcars) # open the data file

    Descriptive Analysis

    a<-mtcars[,c("mpg", "disp", "hp", "wt", "drat")]


    a
    summary(a)

    Bar Chart on the Data


    counts <- table(mtcars$gear)
    barplot(counts, main="Car Distribution", xlab="Number of Gears")

    Group Bar Chart


    counts <- table(mtcars$vs, mtcars$gear)
    barplot(counts, main="Car Distribution by Gears and VS",xlab="Number
    of Gears", col=c("darkblue","red"),legend = rownames(counts),
    beside=TRUE)

    Box Plot
    boxplot(mpg~cyl,data=mtcars, main="Car Milage Data", xlab="Number of
    Cylinders", ylab="Miles Per Gallon")

    Matrix Plot
    pairs(~mpg+disp+drat+wt,data=mtcars)

    Correlation Analysis
    cor(a)

    Fitting the Regression Model


    fit <- lm(mpg~disp+hp+wt+drat, data=mtcars)
    summary(fit) # show results

    Analysis of Variance (ANOVA)


    anova(fit)
    Confidence Interval Estimation
    confint(fit, level=0.95) # CIs for model parameters

    Regression Diagnostic

    Normality
    a. Graphical
    qqPlot(fit, main="QQ Plot")

    b. Test of Hypothesis
    res<-residuals(fit) # to get the residuals from the estimated model
    shapiro.test(res)

    Heteroscedasticity
    a. Graphical
    spreadLevelPlot(fit)# plot studentized residuals vs. fitted values

    b. Test of Hypothesis

    i. Non-constant error variance test


    ncvTest(fit)

    ii. Breush Pagan Test


    lmtest::bptest(fit)

    Multicolinearity
    vif(fit) # variance inflation factors
    sqrt(vif(fit)) > 2 # problem?

    Autocorrelation
    durbinWatsonTest(fit)

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