AE 05: Build better data (II)

Note

This application exercise is completed in class and submitted via a worksheet.

Discussion questions

1. Identify and explain your strategy for handling outliers in the two scenarios.

   1. Employee salaries
   2. Student test scores

2. Identify whether or not you suspect an interaction effect between the two predictors on the outcome. Justify your reasoning.

   1. Hotel booking prices: Season (summer vs. winter) and hotel star rating (1-5 stars) for resort hotels in western Europe.
   2. Student test performance: Hours of sleep and caffeine intake (0-400 mg).
   3. Movie theater ticket sales: Day of week (weekday vs. weekend) and movie theater capacity (100-500 seats).