National Institute of Fashion Technology

Patna, Bihar
Session-2020-2022

Subject- Big Data, BA, AIT&DM

Under the guidance of: Submitted by

Prof. Mr. Kislay Kashyap Sir Prashant Pathak
MFM/20/179

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 ACKNOWLEDGEMENT

Foremost, I would like to express my sincere gratitude to professor Mr. Kislay Kashyap Sir for
giving this assignment and also for his patience, motivation, enthusiasm and immense
knowledge. His guidance helped me in the part of research. I could not have imagined having
a better advisor and mentor for this subject.

I are really grateful because I managed time to complete my assignment within the time given
by our Sir. I also like to expand my deepest gratitude to all those who have directly and
indirectly guided me.

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 ASSIGNMENT SUMMARY

In mathematical calculations the coefficient of numerous connections is a proportion of how

well a given variable can be anticipated utilizing a straight capacity of a bunch of different
factors. It is the connection between the variable's qualities and the best expectations that can
be registered straight from the prescient factors.
Multiple linear regression is an extension of simple linear regression used to predict an outcome
variable on the basis of multiple distinct predictor variable (x)
Y=b©+b1*×1+b2*×2+b3*×3
The B esteems are known as the relapse weights (value). They major the relationship between
the indicator variable and the result can be mediator as the normal impact of a one-unit
expansion in X holding any remaining indicators fix.
Put pictures.
Intercept B0 -19.31
Square ft B1 0.128
Bedrooms B2 15.20
Interpreting coefficients
Hear we can obviously see that Bedrooms has a high coefficient value of 15.20 , therefore, it
has a relatively high effect on the price of the flat as compared to the square ft with a low
coefficient of 0.128.

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IMPORTING DATA IN R STUDIO

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 Question

Use the data in HPRICE1.RAW to estimate the model

Price = B0 + B1 sqrft +B2 bdrms+ e

Where price is the house price measured in thousands of dollars, sqrft is the square foot
area of the house, bdrms is the number of bedrooms in the house and e stands for the
random error.

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Q- 1 Write out the results in equation form.
Ans) The coefficient values are:
B0 = -19.31 , B1 = 0.128 , B2 = 15.20
Therefore, the equation is -19.32 + 0.128 sqrft + 15.20 bdrooms

Q- 2 What is the estimated increase in price for a house with one more bedroom, holding
square footage constant?

Answer: Average of sqrft= 2013.69

Average of bdrms = 3.67

Price= 0.13x 2013.69+15.20x3.67 261.78+ 55.78 = 317.56

Now, we have to keep sqrft constant and add one bdrooms

So, price= 0.13x 2013.60+ 15.20x 4.67 261.78+ 70.98 = 332.76

So the estimated increase in price will be: 332.76-317.56 = 15.2= 15,200

Therefore, one bedroom is estimated to increase the sales price by $15,200.

Q 3- What is the estimated increase in price for a house with an additional

bedroom that is 140 square feet in size? Compare this to your answer in
part (ii).

Ans : Through the equation : Price = 0.128sqrft + 15.20 bdrms

Here, sqrft =14 , bdrooms = 1

Therefore,

Price = 0.128 ×140 + 15.20 ×1

= 17.92 + 15.20

= 33.12

So, estimated price increases by 33.12 which means because price measured in thousand,

Therefore price increases by $33120

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Q4 ) What percentage of the variation in price is explained by square footage and number
of bedrooms?

Ans - Since , R-sq = 0.632, about of the variation in price is explained by square footage and
number of bedrooms.

Therefore,63% of the variation in price is explained by square footage and number of

bedrooms.