1. 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)

2. 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 α=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 asses.

FloorArea (Sq.Ft.)	Offices	Entrances	Age	AssessedValue ($'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