Enter the house and get introduced to the others. When you have to pick some music, walk to the stereo in the corner and make a choice that's cancelled out anyway. When the beers are brought in, choose whatever you like, as your conversation answers do not really have any impact whatsoever. After this, feel free to do several optional things, such as dancing, grabbing/drinking a beer, smoking pot in the kitchen, or (after doing or neglecting these) to continue with the story, sit down on the couch/chairs.
Dancing: [All with RIGHT ANALOG STICK] Left, Up-right, Up-left, Up, Down.
Again, it doesn't really matter how you converse, but story-wise I would not recommend letting Matt go too far on Jodie. When everyone insists that Jodie shows off her powers, choose whatever you like. If you accept, interact with the others and several objects in the room until you've made your point.
No matter what you've chosen, Jodie is put under the stairs. Unlock the door with Aiden, then choose to either leave silently or take revenge. This is a major decision story-wise, and leaves you with two different trophies depending on what you choose:
Leave quietly: Bronze Trophy [Cold Blood]
Take revenge: Bronze Trophy [Revenge]
If you leave, the chapter ends right away. Taking revenge costs a little more effort, but is also more satisfying story-wise. Head back into the living room with Aiden and interact with the objects in the room to seriously scare and even injure your peers.