The below dataset AirBnB2 lists the daily price for a sample of rental properties. The data shows the number of reviews of the property, the number of days available during the year, and whether the rental is a shared space or the entire house/apartment. In addition, the response variables is the daily price of the rental. (A) Code the variable room_type as Entire house = 1 and Shared rental = 0. Report the estimated regression equation predicting the price as a function of number of reviews, availability, and whether it is a shared space or entire house in the space provided below. There are three independent variables and one response variable. (B) In addition, use the model to predict the price for a rental that is the entire house, has 100 reviews, and is available 365 days a year. Write your response in the space provided below. (C) Interpret the slope coefficient for the number of days available variable (availability_365) in context to this problem in the space provided below. Round all the coefficients and answers to three decimal places. room_type number_of_reviews availability_365 price Shared rental 1 365 83 Shared rental 18 365 81 Shared rental 20 365 69 Shared rental 14 353 206 Shared rental 22 355 94 Shared rental 39 346 104 Shared rental 25 172 208 Shared rental 174 59 50 Shared rental 198 133 54 Shared rental 236 147 42 Shared rental 18 331 44 Shared rental 10 276 40 Shared rental 12 239 417 Shared rental 125 336 65 Shared rental 13 340 44 Shared rental 10 331 40 Shared rental 3 361 31 Shared rental 45 357 49 Shared rental 0 173 81 Shared rental 84 340 60 Shared rental 157 349 60 Shared rental 27 364 56 Shared rental 16 300 104 Shared rental 0 365 37 Shared rental 23 345 53 Entire house 11 362 276 Shared rental 0 365 167 Shared rental 28 90 100 Shared rental 0 0 208 Shared rental 0 365 26
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
The below dataset AirBnB2 lists the daily price for a sample of rental properties. The data shows the number of reviews of the property, the number of days available during the year, and whether the rental is a shared space or the entire house/apartment. In addition, the response variables is the daily price of the rental.
(A) Code the variable room_type as Entire house = 1 and Shared rental = 0. Report the estimated regression equation predicting the price as a
(B) In addition, use the model to predict the price for a rental that is the entire house, has 100 reviews, and is available 365 days a year. Write your response in the space provided below.
(C) Interpret the slope coefficient for the number of days available variable (availability_365) in context to this problem in the space provided below.
Round all the coefficients and answers to three decimal places.
| room_type | number_of_reviews | availability_365 | price |
| Shared rental | 1 | 365 | 83 |
| Shared rental | 18 | 365 | 81 |
| Shared rental | 20 | 365 | 69 |
| Shared rental | 14 | 353 | 206 |
| Shared rental | 22 | 355 | 94 |
| Shared rental | 39 | 346 | 104 |
| Shared rental | 25 | 172 | 208 |
| Shared rental | 174 | 59 | 50 |
| Shared rental | 198 | 133 | 54 |
| Shared rental | 236 | 147 | 42 |
| Shared rental | 18 | 331 | 44 |
| Shared rental | 10 | 276 | 40 |
| Shared rental | 12 | 239 | 417 |
| Shared rental | 125 | 336 | 65 |
| Shared rental | 13 | 340 | 44 |
| Shared rental | 10 | 331 | 40 |
| Shared rental | 3 | 361 | 31 |
| Shared rental | 45 | 357 | 49 |
| Shared rental | 0 | 173 | 81 |
| Shared rental | 84 | 340 | 60 |
| Shared rental | 157 | 349 | 60 |
| Shared rental | 27 | 364 | 56 |
| Shared rental | 16 | 300 | 104 |
| Shared rental | 0 | 365 | 37 |
| Shared rental | 23 | 345 | 53 |
| Entire house | 11 | 362 | 276 |
| Shared rental | 0 | 365 | 167 |
| Shared rental | 28 | 90 | 100 |
| Shared rental | 0 | 0 | 208 |
| Shared rental | 0 | 365 | 26 |
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