Spatial Regression in Advanced Spatial analysis and Modeling

Introduction

The main purpose of this study is to explore the process of model selection and spatial regression using S-Plus and its Spatial module. The data available for study is the Census Tract data set for the City of Calgary provided both in GeoDatabase and S-Plus data frame. The dataset is similar to our first Assignment but with an addition of two columns for X and Y to represent Easting and Northing respectively. The previous assignment involved the calculation of a simple linear regression without considering spatial autocorrelation into account. Therefore, in this study, we will fit a regression model to the Census data using ‘Average Income’ as the dependent variable by considering spatial autocorrelation in the regression model. The S-Plus command line was used to compute a Simultaneous Autoregressive (SAR) model so as to describe the relationship between ‘Average Income’ and the other independent variables. This paper includes many statistical techniques applied to obtain the spatial regression model. It also attempts to compare the results obtained from the simple linear regression (in Assignment 1) with the model obtained in this study.

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