Scribd
Upload
7 views2 pages

Final+Project 2

Uploaded by

frfzvqnbxk
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
Download as pdf or txt
7 views2 pages

Final+Project 2

Uploaded by

frfzvqnbxk
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
Download as pdf or txt
Download as pdf or txt
You are on page 1/ 2

BUS 173- FINAL PROJECT

A real estate agent wanted to find the relationship between sale price of houses and the size of the house.
She collected data on two variables recorded in the following table for 16 houses in Richmond, Virginia. The
two variables are

PRICE= Sale price of houses in thousands of dollars

SIZE= Area of the entire house in square feet.

PRICE 455 278 463 327 505 264 445 346 487 289 434 411 223 323 488 654
SIZE 2500 2250 2900 1800 3200 2400 2700 2050 2850 2400 2600 2300 1700 2300 2980 3489

a) Using MICROSOFT EXCEL- run the above regression and copy the output into your assignment word document
from which you can write down the least square regression line. Write down the least square regression line
from that specific output. USE THE NAME OF VARIABLES WHEN YOU WRITE THE EQUATION.

b) Interpret the slope and constant term with proper UNITS assigned.

c) Copy that specific output into your assignment word document which talks about the explanatory power of
the model. Comment on the explanatory power of the regression model from that required output.

Now to increase the explanatory power of the model the real estate agent decides to add two new variables
with the previous variable. The age of the house and the garden size. For the 16 houses in our sample the new
variables are

AGE= Age of the house in years, since it was built

GARDEN= Area of the garden in acres.

AGE 8 12 5 9 4 28 9 13 7 16 5 8 19 17 9 15

GARDEN 1.4 0.9 1.8 0.7 2.6 1.2 2.1 1.1 2.8 1.6 3.2 1.7 0.5 2.7 3.4 5.6

d) Once these two new variables are added with the previous model- run the new regression using MICROSOFT
EXCEL. Copy the output into your assignment word document from which you can write down the new least
square regression line. Write down the new least square regression line from that specific output. USE THE
NAME OF VARIABLES WHEN YOU WRITE THE EQUATION.

e) Interpret the coefficients with all the independent variables with proper UNITS.

f) Copy that specific output into your assignment word document which talks about the explanatory power of
the NEW model. Comment on the explanatory power of the NEW regression model from that required output.
g) Compare the two regression models that you have found using the appropriate parameter. Which is better
and why? Give proper reasoning.

h) If you were to add a DUMMY VARIABLE in this regression model what would be an appropriate one? Why?
Give sound logical reasoning. NO INTERNET COPY PASTING FOR THIS ANSWER. ALL THE INTERNET ELEMENTS
ARE FAMILIAR TO ME, SO BE WARNED.

Answer all the above questions in a word document. The font you shall use to type is Calibri with a font size of
12. In answers that require you to copy the output from the excel file- PLEASE DO SO ACCORDINGLY. When
you submit the file also upload the excel sheet separately in CANVAS. I want to see all the regression related
work that you have done. LISTEN TO MY INSTRUCTIONS. AVOID
PLAGIARISM/CHEATING/COPYING FROM ONE ANOTHER. THAT IS IF YOU WANT
YOUR MARKS. THIS IS THE FINAL ASSIGNMENT AND I WILL NOT ALLOW LATE OR
INCOMPLETE SUBMISSIONS.

You might also like