Purpose This assignment provides an opportunity to develop, evaluate, and apply bivariate and multivariate linear regression models Resources Microsoft Excel DAT5 65 Week 5 Data File floor area (Sq Ft ) Offices Entrances Age assessed value ($'000) 4790 4 2 8 1796 4720 3 2 12 1544 5940 4 2 2 2094 5720 4 2 34 1968 3660 3 2 38 1567 5000 4 2 31 1878 2990 2 1 19 949 2610 2 1 48 910 5650 4 2 42 1774 3570 2 1 4 1187 2930 3 2 15 1113 1280 2 1 31 671 4880 3 2 42 1678 1620 1 2 35 710 1820 2 1 17 678 4530 2 2 5 1585 2570 2 1 13 842 4690 2 2 45 1539 1280 1 1 45 433 4100 3 1 27 1268 3530 2 2 41 1251 3660 2 2 33 1094 1110 1 2 50 638 2670 2 2 39 999 1100 1 1 20 653 5810 4 3 17 1914 2560 2 2 24 772 2340 3 1 5 890 3690 2 2 15 1282 3580 3 2 27 1264 3610 2 1 8 1162 3960 3 2 17 1447 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 floor area assessed 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 with FloorArea as the independent variable and AssessmentValue 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 FloorArea and AssessmentValue Is FloorArea a significant predictor of AssessmentValue Construct a scatter plot in Excel with Age as the independent variable and AssessmentValue 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 Is Age a significant predictor of AssessmentValue Construct a multiple regression model Use Excel's Analysis ToolPak to conduct a regression analysis with AssessmentValue as the dependent variable and FloorArea , Offices , Entrances , and Age 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 use FloorArea and Offices as predictors Suppose our final model is assessed value 115 9 0 26 x FloorArea 78 34 x Offices 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

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Purpose This assignment provides an opportunity to develop, evaluate, and apply bivariate and multivariate linear regression models. Resources: Microsoft Excel DAT5/65 Week 5 Data File

Purpose

This assignment provides an opportunity to develop, evaluate, and apply bivariate and multivariate linear regression models.

Resources: Microsoft Excel DAT5/65 Week 5 Data File

floor area (Sq.Ft.)	Offices	Entrances	Age	assessed value ($'000)
4790	4	2	8	1796
4720	3	2	12	1544
5940	4	2	2	2094
5720	4	2	34	1968
3660	3	2	38	1567
5000	4	2	31	1878
2990	2	1	19	949
2610	2	1	48	910
5650	4	2	42	1774
3570	2	1	4	1187
2930	3	2	15	1113
1280	2	1	31	671
4880	3	2	42	1678
1620	1	2	35	710
1820	2	1	17	678
4530	2	2	5	1585
2570	2	1	13	842
4690	2	2	45	1539
1280	1	1	45	433
4100	3	1	27	1268
3530	2	2	41	1251
3660	2	2	33	1094
1110	1	2	50	638
2670	2	2	39	999
1100	1	1	20	653
5810	4	3	17	1914
2560	2	2	24	772
2340	3	1	5	890
3690	2	2	15	1282
3580	3	2	27	1264
3610	2	1	8	1162
3960	3	2	17	1447

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:

floor area assessed: 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 with FloorArea as the independent variable and AssessmentValue 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 FloorArea and AssessmentValue. Is FloorArea a significant predictor of AssessmentValue?
Construct a scatter plot in Excel with Age as the independent variable and AssessmentValue 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. Is Age a significant predictor of AssessmentValue?

Construct a multiple regression model.

Use Excel's Analysis ToolPak to conduct a regression analysis with AssessmentValue as the dependent variable and FloorArea, Offices, Entrances, and Age 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 use FloorArea and Offices as predictors?
Suppose our final model is:
assessed value = 115.9 + 0.26 x FloorArea + 78.34 x Offices
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?