Assignment due: Monday 29 August 2016 (no extensions: 10% deduction for each day late)

Assignment marks: [10]


Instructions

Using the README.Rmd file you created and updated for Assignments 1 through 5, add another code chunk that includes the analysis required for assignment 6. Knit the document, and the push the changes to Github. Email a link to the updated repo to: peter.kamerman@wits.ac.za.

Your task for this assignment is to import the datasets into your R session, and for each dataset: - Tidy the data (if nessesary); - Explore the data with plots;
- State the null and alternative hypotheses;
- Perform a linear regression, stating the assumptions that underlie the analysis, and showing appropriate diagnostic plots; - Provide the test statistic, degrees of freedom, p-value, and your interpretation of the outcome of the analysis.

Set your chunk options to echo all code, and remember to annotate your code using ‘# comment’ in your chunks so others can follow what you are doing at each step. And, use markdown headings and text between chunks to guide readers.

Chunk 1

Housing prices

The dataset includes data on the interest rate and house prices in the USA. Explore the dataset. The data can be downloaded from here.

Once you have completed the analysis, re-format your exploratory figure to be publication ready (use ggplot2 or R base graphics). Things to consider include, but are not limited to: axis titles, font sizes, plot dimensions, point size/colour/shape, whether to include a regression line (with or without error data).