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 Floor Area as the independent variable and Assessment Value 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 Floor Area and Assessment Value. Is Floor Area a significant predictor of Assessment Value?
Construct a scatter plot in Excel with Age as the independent variable and Assessment Value 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 Assessment Value as the dependent variable and Floor Area, 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 Floor Area and Offices as predictors?
Suppose our final model is:
Assessed Value = 115.9 + 0.26 x Floor Area + 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?
Floor Area (Sq. Ft) Age Offices 4 AssessedValue (6000 544 2094 5:21 37 Entrances 2 2 2 2 2 2 1 1 2 4 4 3 4 2 2 4 2. 3 2 3 12 2 34 3 31 15 4F 2518 5861 3570 2330 1280 710 774 187 113 1 1 2 4 18 31 2 2 1 1020 1320 *878 710 370 1 17 2 2 2 25/1 4-4 2 1 2 13 45 45 1 1 1 3 2 2 41 INNE 251 001 538 50 1 1 2 2 2. 1 4100 357 3566 1110 2570 110C 5310 2960 2340 304C 20 311 3 2C 17 3 2 358 914 772 1 4 2 9 2 3 2 3 5 16 2 2 1 2 17 427