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

Resources: Microsoft Excel, DAT565_v3_Wk5_Data_File

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 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 Excels 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 Excels 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 Excels 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:

AssessedValue = 115.9 + 0.26 x FloorArea + 78.34 x Offices

What wouldbe 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 databas

Must show steps in excel

fx B D E F 1 Age 2 3 Offices 4 3 4 Entrances 2 2 2 2 2 4 5 4 6 3 7 4 2 8 2 1 9 2 1 2 8 12 2 34 38 31 19 48 42 4 15 31 42 35 17 5 10 4 AssessedValue ($'000) 1796 1544 2094 1968 1567 1878 949 910 1774 1187 1113 671 1678 710 678 1585 842 1539 11 1 12 2 3 2 13 3 14 15 1 FloorArea (Sq.Ft.) 4790 4720 5940 5720 3660 5000 2990 2610 5650 3570 2930 1280 4880 1620 1820 4530 2570 4690 1280 4100 3530 3660 1110 2670 1100 5810 2560 2340 3690 3580 3610 3960 2 1 2 2 1 2 1 16 17 2 2 2 2 18 13 19 2 45 45 20 1 433 21 1268 1251 22 3 2 2 1 23 24 1 1 2 2 2 2 1 3 2 27 41 33 50 39 20 17 24 25 2 1 26 1094 638 999 653 1914 772 890 27 4 28 2 3 29 1 5 30 2 15 2 3 2 1282 1264 31 2 27 32 1 8 1162 1447 33 3 2 17 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64