A recently released government report suggests that the number of new construction housing starts nationwide is influenced by mortgage rate volatility. A local home builder is interested in creating a model for predicting the number of housing starts within his geographic region using the prevailing mortgage rate as a potential predictor variable. The information in MBA 7715 Case Study No. 3 Data.xlsx file pertains to a random sample of monthly housing starts in the particular geographic areas of interest over a five-year period. Using the data file, calculate and interpret the various nonlinear regression models required in the instruction sheet.Date Jo. Housing Startlortgage Rat 2 2006-01-01 2273 6.15 3 2006-02-01 2119 6.25 4 2006-03-01 1969 6.32 5 2006-04-01 1821 6.51 6 2006-05-01 1942 6.60 -J 2006-06-01 1802 6.68 2006-07-01 1737 6.76 9 2006-08-01 1650 6.52 10 2006-09-01 1720 6.40 11 2006-10-01 1491 6.36 12 2006-11-01 1570 6.24 13 2006-12-01 1649 6.14 14 2007-01-01 1409 6.22 15 2007-02-01 1480 6.29 16 2007-03-01 1495 6.16 17 2007-04-01 1490 6.18 18 2007-05-01 1415 6.26 19 2007-06-01 1448 6.66 20 2007-07-01 1354 6.70 21 2007-08-01 1330 6.57 22 2007-09-01 1183 6.38 23 2007-10-01 1264 6.38 24 2007-11-01 1197 6.21 25 2007-12-01 1037 6.10 26 2008-01-01 1084 5.76 27 2008-02-01 1103 5.92 28 2008-03-01 1005 5.37 29 2008-04-01 1013 5.92 30 2008-05-01 973 6.04 31 2008-06-01 1046 6.32 32 2008-07-01 923 6.43 33 2008-08-01 844 6.48 34 2008-09-01 820 6.04 35 2008-10-01 777 6.20 36 2008-11-01 652 6.09 37 2008-12-01 560 5.33 38 2009-01-01 488 5.06 39 2009-02-01 581 5.13 40 2009-03-01 520 5.00\fMBA 7715 Case Study #3 c) Cubic regression model using the number of housing starts as the dependent variable. Label your results in an Excel workbook using the prompt number. Nonlinear Regression Models variable and mortgage rate, mortgage rate , and mortgage rate as independent Write the regression equation for the model. Write your answer in the box variables. Label your results in an Excel workbook using the prompt below. A recently released government report suggests that the number of new construction number. Write the regression equation for the model. Write your answer in the housing starts nationwide is influenced by mortgage rate volatility. A local home builder box below. is interested in creating a model for predicting the number of housing starts within his 2) Display the actual and predicted values for each of the above models in a time- geographic region using the prevailing mortgage rate as a potential predictor variable. series line graph like demonstrated in the video. You should have a separate graph The information in the MBA 7715 Case Study No. 3 Data xlax file pertains to a random d) Log-log regression model using the natural logarithm of the number of housing for each model. Label your results in an Excel workbook using the prompt sample of monthly housing starts in the particular geographic areas of interest over a starts as the dependent variable and the natural logarithm of mortgage rate as number. five-year period. the independent variable. Label your results in an Excel workbook using the 1) Develop the following six regression models to predict the number of housing starts: prompt number. Write the regression equation for the model. Write your 3) Discuss the joint statistical significance of each of the preceding regression models a) Linear regression model using the number of housing starts as the dependent answer in the box below. at 9 95% level of confidence, including identifying the appropriate regression variable and mortgage rate as the independent variable. Label your results in statistics, statistic values, and criteria used to evaluate the joint statistical an Excel workbook using the prompt number. Write the regression equation significance. Write your answer in the box below. for the model. Write your answer in the box below. e) Logarithmic regression model using the number of housing starts as the dependent variable and the natural logarithm of mortgage rate as the independent variable. Label your results in an Excel workbook using the 4) Discuss the individual statistical significance of each of the preceding regression b) Quadratic regression model using the number of housing starts as the dependent prompt number. Write the regression equation for the model. Write your models at a 95% level of confidence, including identifying the appropriate regression variable and mortgage rate and mortgage rate" as independent variables. Label answer in the box below. statistics, statistic values, and criteria used to evaluate the individual statistical your results in an Excel workbook using the prompt number. Write the significance. Write your answer in the box below. regression equation for the model. Write your answer in the box below. f) Exponential regression model using the natural logarithm of the number of housing starts as the dependent variable and mortgage rate as the independent5) Which model shows unusual findings in joint and individual significance? Describe the unusual findings. What is the likely cause of this unusual finding? Write your 10)Using the quadratic regression model, calculate the mortgage rate with the minimum answers in the box below. predicted number of housing starts. Calculate the minimum predicted the number of housing starts from the model using that mortgage rate. Write your answer in the box below. 6) Check all models for the equal variance assumption. Which models that show evidence of violation of this assumption? Describe the pattern that is seen for each model that violates the assumption. Write your answer in the box below. Prepare a brief written report (Microsoft Word format) that summarizes the case study background, your analysis methodology, your analysis findings, and your recommendations (refer to the sample regression report posted in Blackboard for further 7) Compare the preceding regression models that were determined to be statistically guidance. Additionally. prepare a single Microsoft Excel file that documents each of the significant and select a preferred model. Discuss the regression statistics used to regression models developed for the case study, as well as all other work you perform compare the models, statistic values involved, and criteria used to select the to complete each portion of the case study. Use a separate and clearly labeled preferred model. Write your answer in the box below. worksheet within your spreadsheet for each regression model and/or portion of the case study. Upload your Word and Excel files for grading to Canvas. 8) Discuss the correct interpretation of the predicted change in y associated with a one unit change in x for the log-log model. Write your answer in the box below. 9) Using the log-log regression model, predict the number of housing starts when the mortgage rate is 5.2%. Write your answer in the box below