Nassau County is located approximately 25 miles east of New York City. Data in the file GLENCOVE20FA (available in the Week Module files) are from a sample of 30 single-family homes located in Glen Cove. Variables included are the fair market value (in thousands of dollars), land area of the property (acres), interior size of the house (square feet), and age (years). . (1) Construct a correlation matrix of all variables. (10) Which variable has the strongest linear relationship with fair market value of a home? What is the correlation value? (2) Develop a multiple regression model to predict falr market value of a home using all of the independent variables. (15) State the multiple regression equation. (15) Interpret the meaning of all the slopes of the equation (be sure to use appropriate units of measure). I (10) Interpret and explain the meaning of the adjusted r. (5) If you wanted to improve the adjusted r, suggest an additional Independent variable that you might want to add to the model to help predict the fair market value of a home. (10) Interpret and explain the meaning of the Standard Error. (10) At the .05 level of significance, determine whether each independent variable makes a significant contribution to the regression model. On the basis of these results, are all of the Independent variables significant in the model? (10) Predict the fair market value for a house that has a land area of .25 acres, with an interior size of 2200 square feet, and is 30 years old. (15) Perform a residual analysis on your results. Are the regression assumptions valid for these data? Age 56 61 39 28 56 Address 9 Sycamore Road 21 Jefferson St 38 Hitching Post Lane 4 Poppy Lane 5 Daniel Drive 15 Francis Terrace 23 Guilfoy Street 17 Carlyle Drive 8 Craft Avenue 22 Beechwood Ct. 14 Fox Street 1 Raynham Road 2 Jerome Drive 7 Valentine Street 38 Jefferson Street 15 Inwood Road 29 Meadowfield Lane 13 Westland Drive 179 Valentine Street 13 Fairmont Place 1 Prestwick Terrace 11 Clement Street 7 Woodland Road 36 Elm Avenue 17 Duke Place 12 Prospect Avenue 1 Buckeye Road 30 Ann Street 26 Broadfield Place 16 Jackson Street Fair Market Value ($000) 522.9 425.0 539,2 628.2 490.4 487.7 370.3 777.9 347.1 756.8 389.0 889.0 452.2 412.4 338.3 334.3 437.4 644.0 387.8 399.8 356.4 346.9 541.8 388.0 564.0 454.4 417.3 318.8 519.8 310.2 Property Size (acres) 0.2297 0.2192 0.1630 0.4608 0.2549 0.2290 0.1808 0.5015 0.2229 0.1300 0.1763 1.3100 0.2520 0.1148 0.1693 0.1714 0.3849 0.6545 0.1722 0.1435 0.2755 0.1148 0.3636 0.1474 0.2281 0.4626 0.1889 0.1228 0.1492 0.0852 98 58 17 62 25 64 62 56 22 74 62 54 56 62 88 81 107 55 51 50 92 64 54 44 104 House Size (square feet) 2448 1942 2073 2707 2042 2089 1433 2991 1008 3202 2230 1848 2100 1846 1331 1344 1822 2479 1605 2080 2410 1753 1884 2050 2978 2132 1551 1129 1674 1184
