Question: 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

  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

 


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