For the Houses data at Index of Datasets consider Y = selling price, x1 = tax bill (in dollars), and x2 = whether the house is new:

For the Houses data at Index of Datasets consider Y = selling price, x1 = tax bill (in dollars), and x2 = whether the house is new:

Form the scatter plot of y and x1. Then answer, does the normal GLM structure of constant variability in y seem appropriate? If not, how does it seem to be violated?

Using the identity link function, fit the

normal GLM

gamma GLM

For each model, interpret the effect of x2.

For each model, describe how the estimated variability in selling prices varies as the mean selling price varies from 100 thousand to 500 thousand dollars.

Which model is preferred according to AIC?

Datasets needed are at Index of Datasets

Useful functions in R to solve problems in this assignment: read.table, head, glm, summary

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