Coco S. A. has requested that a local property company undertake an analysis of property prices. The

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Coco S. A. has requested that a local property company undertake an analysis of property prices. The initial data collection has been undertaken and independent variables identified: square feet, age, and local property tax. The Excel regression analysis has been performed with the results presented in Figures 8.56–8.60.

G 3 SUMMARY OUTPUT 3456 Regression Statistics 6 Multiple R 7 R Square 8 Adjusted R Square 9 Standard Error 10Residuals 80000 60000 40000 20000 0 -20000 + -40000 -60000 Figure 8.57 Residuals 80000 60000 40000 20000 0Residuals 80000 60000 40000 20000 0 -20000 -40000 -60000 Figure 8.59 250000- 200000 150000 100000 50000 0

(a) State the least squares linear regression equation ŷ = b0 + b1x1 + b2x2.

(b) Comment on model reliability (r and COD).

(c) Is the overall model significant (F test)?

(d) Are the independent variables significant (t-tests)?

(e) Check model assumptions (residual and normality checks).

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Business Statistics Using Excel

ISBN: 9780199659517

2nd Edition

Authors: Glyn Davis, Branko Pecar

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