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In Class Assignment 5
The
following information regarding the real estate prices is given to you:
| Square
Feet |
Age |
Price |
| 1700 |
14 |
390000 |
| 1518 |
27 |
340000 |
| 2708 |
22 |
603000 |
| 830 |
15 |
179500 |
| 2250 |
28 |
480000 |
| 1969 |
37 |
425000 |
| 4200 |
10 |
920000 |
| 4300 |
6 |
1000000 |
| 2078 |
70 |
450000 |
| 3400 |
12 |
750000 |
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Using
the ‘Multiple Regression Analysis Tool’ generate a model for your data.
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Rename
the new sheet that was created; call it “Regression Analysis”.
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Add
your name and date to the header of the worksheet.
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Adjust the column widths to display the entire contents
and print-fit the sheet in landscape orientation.
Understanding the concept
Use
a word processor or a pen and paper to answer the following questions.
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If the Real Estate Model you just created can be expressed as ‘Y
= m1X1 + m2X2 + b’ where X1=Square Feet,
X2=Age, and Y=Price of the Home. What are the values of the coefficients
m1, m2 and b?
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Express the model in the form of an equation (use your judgment for the number of
decimal places).
- If a home in the same locality has 4000 Square Feet of floor space
and is 5 Years old, what would your estimate for the Price of the home?
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What is the value of the Adjusted R-square? What does it suggest?
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Give an example where you might use the ‘Multiple Regression Technique’ you just
used.
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