Lecture Overview:

• Example in R - Video game dataset
• Introduction to Matrix Algebra (Ch. 5)

Example in R - Videogames PS4

• Dataset contains list of video games on PS4 platform in the year 2016.
• Y = global_sales - total worldwide sales (in millions)
• X = Critic_score - aggregate score complied by Metacritic staff

Code in lecture5.r file

Model Interpretation

The fitted model: $\hat{log(Y)}=-7.1118+0.0735X$

• One unit increase in the game rating corresponds to an estimated 0.0735 unit increase in the log of sales.

or: $\hat{Y}=e^{(-7.1118+0.0735X)}$

$= e^{-7.1118}+e^{0.0735X}$

• One unit increase in the game rating corresponds to an estimated multiply of exp(0.0735) on sales.

Introduction to Matrix Algebra (Ch. 5)

• The matrix approach is a necessity in multiple regression analysis.