PurposeThis assignment provides an opportunity to develop, evaluate, and apply bivariate and...

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PurposeThis assignment provides an opportunity to develop, evaluate, and apply bivariate and multivariate linear regression models.Resources:Microsoft Excel® DAT5/65 Week 5 Data FileInstructions: The...

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Purpose

This assignment provides an opportunity to develop, evaluate, and apply bivariate and multivariate linear regression models.

Resources:Microsoft Excel® DAT5/65 Week 5 Data File

Instructions:

The Excel file for this assignment contains a database with information about the tax assessment value assigned to medical office buildings in a city. The following is a list of the variables in the database:

FloorArea: square feet of floor space
Offices: number of offices in the building
Entrances: number of customer entrances
Age: age of the building (years)
AssessedValue: tax assessment value (thousands of dollars)

Use the data to construct a model that predicts the tax assessment value assigned to medical office buildings with specific characteristics.

Construct a scatter plot in Excel with FloorArea as the independent variable and AssessmentValue as the dependent variable. Insert the bivariate linear regression equation and r^2 in your graph. Do you observe a linear relationship between the 2 variables?
Use Excel’s Analysis ToolPak to conduct a regression analysis of FloorArea and AssessmentValue. Is FloorArea a significant predictor of AssessmentValue?
Construct a scatter plot in Excel with Age as the independent variable and AssessmentValue as the dependent variable. Insert the bivariate linear regression equation and r^2 in your graph. Do you observe a linear relationship between the 2 variables?
Use Excel’s Analysis ToolPak to conduct a regression analysis of Age and Assessment Value. Is Age a significant predictor of AssessmentValue?

Construct a multiple regression model.

Use Excel’s Analysis ToolPak to conduct a regression analysis with AssessmentValue as the dependent variable and FloorArea, Offices, Entrances, and Age as independent variables. What is the overall fit r^2? What is the adjusted r^2?
Which predictors are considered significant if we work with α=0.05? Which predictors can be eliminated?
What is the final model if we only use FloorArea and Offices as predictors?
Suppose our final model is:
AssessedValue = XXXXXXXXXXx FloorArea XXXXXXXXXXx Offices
What wouldbe the assessed value of a medical office building with a floor area of 3500 sq. ft., 2 offices, that was built 15 years ago? Is this assessed value consistent with what appears in the database?

dat565v3wk5datafile-j5wsdfum-yx1f5mce.xlsx

Answered 1 days After Jan 11, 2023

Bikash · Accepted Answer

1a. Construct a scatter plot in Excel with Floor Area as the independent variable and Assessment Value as the dependent variable. Insert the bivariate linear regression equation and r^2 in your graph. Do you observe a linear relationship between the 2 variables?
Yes, there is a linear relationship between Floor Area and Assessment Value. There is a positive correlation which means that as the floor area increases, the Assessment Value increases.
1b. Use Excel’s Analysis ToolPak to conduct a regression analysis of Floor Area and Assessment Value. Is Floor Area a significant predictor of Assessment Value?
Null Hypothesis: Floor Area has no impact on Assessment Value i.e., Floor Area is not a significant predictor of Assessment Value.
Alternative Hypothesis: Floor Area has significant impact on Assessment Value i.e., Floor Area is a significant predictor of Assessment Value.
Tool Used: Regression Analysis
Interpretation: Since P – Value for Floor Area (0.0000) is less than alpha level of significance (0.05) we reject the null hypothesis and conclude that Floor Area is a significant predictor of Assessment Value.
2a. Construct a scatter plot in Excel with Age as the independent variable and Assessment Value as the dependent variable.

PurposeThis assignment provides an opportunity to develop, evaluate, and apply bivariate and multivariate linear regression models.Resources:Microsoft Excel® DAT5/65 Week 5 Data FileInstructions: The...

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