Showing posts with label Richad Bowen. Show all posts
Showing posts with label Richad Bowen. Show all posts

Wednesday, July 22, 2009

Location (second post -- question)

After taking advice from Dr. Hansz and Ramya I have developed a new model that expands upon the one previously posted. My "Location" paper is focusing on the variable: distance from a franchise restaurant. I split the distance into 4 dummy variables: B(Distance, 1/3, 2/3, 3/3, 4/3). My previously posted model had 3 of 4 distance variables kicked out for different reasons.

Following advice, I added a "Pool" dummy variable. It changed everything. Now 3 of 4 distance variable are inside the model explaining the Sales Price. The problem is that I lost .o1 R^2. The new model has a R^2 value of .777 instead of .787. Both models show strength, aptness, and follow the rules of regression.

I am inclined to choose the new model. Any advice?