159 Regression anatomy in R

This video demonstrates how to empirically verify the Frisch-Waugh-Lovell theorem using real data in R. We'll analyze a dataset of house sales in Boston, utilizing R to perform regressions and visualize the process. The tutorial walks through residualizing variables to isolate the effect of surface area on price, controlling for the number of bedrooms. You will learn how to use R libraries for data analysis and visualization and understand the step-by-step application of the theorem to real-world data. We will compare the results from the full model with the residualized approach to show that they yield the same coefficient. Visit AxiomTutoring.com for more resources and subscribe to @AxiomTutoringCourses for further econometrics insights.