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Simple Linear Regression: # Loading Data

The document performs simple linear regression analysis on advertising data to model sales based on TV, radio, and newspaper advertising spending. It loads and explores the data, fits three separate linear regression models relating sales to each advertising medium, compares the models, and produces scatter plots showing the linear relationships with fitted lines.

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Brokin Hart
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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
39 views

Simple Linear Regression: # Loading Data

The document performs simple linear regression analysis on advertising data to model sales based on TV, radio, and newspaper advertising spending. It loads and explores the data, fits three separate linear regression models relating sales to each advertising medium, compares the models, and produces scatter plots showing the linear relationships with fitted lines.

Uploaded by

Brokin Hart
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Simple Linear Regression

Soumya Roy
# Loading Data
d<-read.csv("C:/Users/Soumya-
Roy/Desktop/DAR_20/Session_4/Advertising.csv",header=T)

# Naming the variables


TV<-d$TV
Radio<-d$Radio
Newspaper<-d$Newspaper
Sales<-d$Sales

# Scatter Plots
# For having three scatter plots in a single row
par(mfrow=c(1,3))
# Sales vs TV
plot(TV,Sales,col="red",lwd=2)

# Sales vs Radio
plot(Radio,Sales,col="red",lwd=2)

# Sales vs Newspaper
plot(Newspaper,Sales,col="red",lwd=2)
# Fitting the Simple Linear Regression Models

# Model 1: Sales on TV
mod_1=lm(Sales~TV,data=d)
summary(mod_1)

##
## Call:
## lm(formula = Sales ~ TV, data = d)
##
## Residuals:
## Min 1Q Median 3Q Max
## -8.3860 -1.9545 -0.1913 2.0671 7.2124
##
## Coefficients:
## Estimate Std. Error t value Pr(>|t|)
## (Intercept) 7.032594 0.457843 15.36 <2e-16 ***
## TV 0.047537 0.002691 17.67 <2e-16 ***
## ---
## Signif. codes: 0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
##
## Residual standard error: 3.259 on 198 degrees of freedom
## Multiple R-squared: 0.6119, Adjusted R-squared: 0.6099
## F-statistic: 312.1 on 1 and 198 DF, p-value: < 2.2e-16
# Model 2: Sales on Radio
mod_2=lm(Sales~Radio,data=d)
summary(mod_2)

##
## Call:
## lm(formula = Sales ~ Radio, data = d)
##
## Residuals:
## Min 1Q Median 3Q Max
## -15.7305 -2.1324 0.7707 2.7775 8.1810
##
## Coefficients:
## Estimate Std. Error t value Pr(>|t|)
## (Intercept) 9.31164 0.56290 16.542 <2e-16 ***
## Radio 0.20250 0.02041 9.921 <2e-16 ***
## ---
## Signif. codes: 0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
##
## Residual standard error: 4.275 on 198 degrees of freedom
## Multiple R-squared: 0.332, Adjusted R-squared: 0.3287
## F-statistic: 98.42 on 1 and 198 DF, p-value: < 2.2e-16

# Model 3: Sales on Newspaper


mod_3=lm(Sales~Newspaper,data=d)
summary(mod_3)

##
## Call:
## lm(formula = Sales ~ Newspaper, data = d)
##
## Residuals:
## Min 1Q Median 3Q Max
## -11.2272 -3.3873 -0.8392 3.5059 12.7751
##
## Coefficients:
## Estimate Std. Error t value Pr(>|t|)
## (Intercept) 12.35141 0.62142 19.88 < 2e-16 ***
## Newspaper 0.05469 0.01658 3.30 0.00115 **
## ---
## Signif. codes: 0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
##
## Residual standard error: 5.092 on 198 degrees of freedom
## Multiple R-squared: 0.05212, Adjusted R-squared: 0.04733
## F-statistic: 10.89 on 1 and 198 DF, p-value: 0.001148

# 95% Confidence Interval for the Model Parameters


confint(mod_1)
## 2.5 % 97.5 %
## (Intercept) 6.12971927 7.93546783
## TV 0.04223072 0.05284256

confint(mod_2)

## 2.5 % 97.5 %
## (Intercept) 8.2015885 10.4216877
## Radio 0.1622443 0.2427472

confint(mod_3)

## 2.5 % 97.5 %
## (Intercept) 11.12595560 13.57685854
## Newspaper 0.02200549 0.08738071

# Scatter Plots with Fitted Regression Lines


par(mfrow=c(1,3))
# Sales vs TV
plot(TV,Sales,col="red",lwd=2)
# For adding the fitted regression line
abline(mod_1,lwd=3,col="blue")

# Sales vs Radio
plot(Radio,Sales,col="red",lwd=2)
abline(mod_2,lwd=3,col="blue")

# Sales vs Newspaper
plot(Newspaper,Sales,col="red",lwd=2)
abline(mod_3,lwd=3,col="blue")

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