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Create new variables (dummy variables, interaction terms, quadratic terms)

Instructions:

For this assignment, you must work in pairs. each pair will turn in only one assignment.
Any necessary output should be copied and pasted directly into a word processing document (not appended to the end in an appendix). Hint: you may need to reformat the output so that it is neat and professional. All output should be clearly labeled for reference in your written responses.
This project involves analyzing data to predict the prices of some cars (DAE 3 Data.xlsxPreview the documentView in a new window). Split your data set randomly with 70% training and 30% validation. Your analysis should include the following:

What you should hand in:

Analysis

You many need to create new variables (dummy variables, interaction terms, quadratic terms)
You must tell the story of the data. Include example, graphs, tables or charts (If it easier, you can include graphs using other software such as excel, minitab, spss, etc.)
Final Model

Description of the final model.
Practical interpretation of the parameter estimates
Example predictions, including prediction intervals for several different vehicle profiles (e.g. type of car, make, model, etc. as appropriate to your solution)
Justification that your final model meets the regression assumptions
RMSEprediction
The project will be graded based on:

The quality of the final model
The model justification/validation
Practical interpretation
Example predictions
Formatting of the report

You need to use sas to analyze the data

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