How to do Linear Regression in R Using OLS Regression¶
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# ------------------------------------------------------------
# How to do Linear Regression in R Using OLS Regression
# ------------------------------------------------------------
# load data longley data for Econometrics
library(pls)
data(longley)
Data <- as.matrix(longley)
dim(Data)
head(Data)
x <- Data[,1:6]
y <- Data[,7]
# ------------------------
# Using OLS Regression
# ------------------------
# fit model
fit <- lm(Employed~., longley)
# summarize the fit
summary(fit)
# make predictions
predictions <- predict(fit, longley)
# summarize accuracy
mse <- mean((longley$Employed - predictions)^2)
print(mse)
# visualise Linear Regression
plot(longley$Employed, predictions)
