Regression Modeling

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 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 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?