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 ?=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?

AutoSave O Off) DAT565_v3_Wk5_Data_File (1) - Excel Search A ericj1981@icloud.com E X File Home Insert Page Layout Formulas Data Review View Help Share Comments Calibri 11 ~ A" A = ab Wrap Text Insert General Ex AY O Delete Paste BIU E = Merge & Center $ ~ % " .00 Conditional Format as Sort & Find & Analyze Sensitivity Formatting Table * Styles * Format Filter * Select Data Clipboard Font Alignment Number Styles Cells Editing Analysis Sensitivity U12 X V A B C E F G H J K L M N 0 P Q R S T U W Y Z AA 1 FloorArea [Sq.Ft.] Offices Entrances Age AssessedValue ($'000) 1790 2 8 796 4720 1544 5941 209 5720 INNNNN 1968 3660 1567 5000 878 2990 1 949 2610 910 565 177 3570 1187 2930 1113 25 1280 671 4880 1678 1620 710 1820 678 IN - N NW - NN NN - WNW N A N N 4530 1585 2570 842 4690 1539 1280 433 410 1268 3530 1251 - N N - N Q - N N N N - - N - N - N N - 3660 1094 1110 638 2670 999 1100 653 5810 1914 2560 772 2340 890 NON W N + 3690 1282 3580 1264 8610 1162 23 3960 1447 Regression Modeling Data + D Ready - - + 69%