Page 31 - Regression Guideline for AMC

Normal distribu6on of data
• This graph compares predicted and actual sales prices for the Orlando data. Most proper6es are close to the dark red regression line and are well predicted. The distance between the dots and the regression line reflect the residual or error term for each property.
• A few proper6es, those in the red circle, were
not well predicted and would have large residual values.
• Overall, however, this model produces
accurate es6mates that will be reflected in the model summary sta6s6cs such as R-­‐ square and Mean Average Percent Error (MAPE).
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