Notebook + Quiz: Dummy Variables

Code

If you need a code on the https://github.com/udacity.

Use the linear model results from the first question to mark all of the below that are true.

The confidence interval for the intercept is a range from a very very large negative number to a very very large positive number.

The confidence interval for the slope associated with neighborhood A is a range from a very very large negative number to a very very large positive number.

The confidence interval for the slope associated with neighborhood B is a range from a very very large negative number to a very very large positive number.

The confidence interval for the slope associated with neighborhood C is a range from a very very large negative number to a very very large positive number.

SOLUTION:

The confidence interval for the intercept is a range from a very very large negative number to a very very large positive number.
The confidence interval for the slope associated with neighborhood A is a range from a very very large negative number to a very very large positive number.
The confidence interval for the slope associated with neighborhood B is a range from a very very large negative number to a very very large positive number.
The confidence interval for the slope associated with neighborhood C is a range from a very very large negative number to a very very large positive number.

QUIZ QUESTION::

Based on the results of your multiple linear regression model from question 2, match each neighborhood to the description that correctly describes how the neighborhood homes compare to the other neighborhoods.

ANSWER CHOICES:

Neighborhood	Description
A
B
C

SOLUTION:

Neighborhood	Description
C
A
B

SOLUTION:

There is statistically significant evidence that the average home price in neighborhood B differs from the average home price in neighborhood A.
There is statistically significant evidence that the average home price in neighborhood B differs from the average home price in neighborhood C.

QUIZ QUESTION::

Use the results from your multiple linear regression model in question 4 above to match the values to the appropriate spot in the descriptions below.

ANSWER CHOICES:

Description	Value
__% of the variability in price can be explained by the linear model built using bedrooms, bathrooms, neighborhood, and home style.
For every additional bedroom a home has we can expect the price to increase by __, holding all other variables constant.
For every additional bathroom a home has we can expect the price to increase by __, holding all other variables constant.
We expect that a victorian house will cost _ more than a _ house, all else being equal.
We expect that a house in neighborhood C will cost _ less than a neighborhood _ house, all else being equal.

SOLUTION:

Description	Value
__% of the variability in price can be explained by the linear model built using bedrooms, bathrooms, neighborhood, and home style.
We expect that a house in neighborhood C will cost _ less than a neighborhood _ house, all else being equal.
We expect that a victorian house will cost _ more than a _ house, all else being equal.
For every additional bathroom a home has we can expect the price to increase by __, holding all other variables constant.
For every additional bedroom a home has we can expect the price to increase by __, holding all other variables constant.