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 withFloorArea as the independent variable andAssessmentValue 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 ofFloorArea andAssessmentValue. Is FloorArea a significant predictor ofAssessmentValue?
• Construct a scatter plot in Excel withAge as the independent variable andAssessmentValue 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. IsAge a significant predictor ofAssessmentValue?

Constructa multiple regression model.

• Use Excel's Analysis ToolPak to conduct a regression analysis withAssessmentValueas the dependent variable andFloorArea,Offices,Entrances, andAge 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 =0.05? Which predictors can be eliminated?
• What is the final model if we only useFloorArea and Offices as predictors?
• Suppose our final model is:
• AssessedValue = 115.9 + 0.26 xFloorArea + 78.34 xOffices
• What would be 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?