Class 8. Multiple regression review example.

Table of contents for Class 8

	223-249 ........ Executive compensation review example.
	   225  ........ Introduction -- what's an MBA worth?
           226  ........ Compressed scatterplot due to an outlier.
           227  ........ Log transform reveals structure.
           228  ........ Splitting data by MBA (YES/NO).
           229  ........ Compensation varies by industry.
           230  ........ Concentrating on the finance segment.
           231  ........ MBA's in finance -- compensation rises
                         faster with sales.
           232  ........ Do you need an MBA -- partial F-test.
           233  ........ Residuals and leverage plots -- spotting an
                         outlier.
           234  ........ Removing the outlier.
           235  ........ More outliers but not so leveraged.
           236  ........ Thinking about other useful variables.
           237  ........ Leading to a more complex model.
           238  ........ Highly leveraged point for the returns
                         variable.
           239  ........ Drop point and see what happens -- not
                         much -- not influential.
        240-241 ........ Profits -- curvature suggests a transform.
        242-244 ........ Model output, residual and leverage plots.
           245  ........ Putting MBA back into the model.
           246  ........ What's an MBA worth in the BIG model?
        247-248 ........ Residual plots.
           249  ........ It's worth $400,000 on a $2,000,000
                         compensation package.