Using the data in the Excel file Home Market Value, develop a multiple linear regression model for estimating the market value as a function of both the age and size of the house. Predict the value of a house that is 30 years old and has 1,800 square feet, and one that is 5 years old and has 2,800 square feet.
Multi-Regression Model Building and Interpretation Rubric
1. Identify the dependent variable (Y)
2. Identify the independent variables (Xs)
3. Check for multicollinearity among the Xs: Data>Data Analysis>Correlation -> take action as needed
4. Run Regression: Data>Data Analysis>Regression, including residuals, standardized residuals, and residual plots
5. Evaluate residuals for obvious non-random patterns and outliers -> take action as needed
6. Check p-values for X coefficients -> take action as needed
7. Check the significance of the overall model based upon the ANOVA significance F (p-value) – take action as needed
8. Interpret the adjusted R Square value
9. Write out the prediction equation to include the y=f(x) regression coefficient and perform any predictions as required. Please note that the regression coefficient is the slope of the line of the regression equation.
10.Tell the story. Explain the meaning of the analysis using everyday words.
Please include the steps to complete the regression model.
Here is the data:
Home Market Value
House Age Square Feet Market Value
33 1,812 $90,000.00
32 1,914 $104,400.00
32 1,842 $93,300.00
33 1,812 $91,000.00
32 1,836 $101,900.00
33 2,028 $108,500.00
32 1,732 $87,600.00
33 1,850 $96,000.00
32 1,791 $89,200.00
33 1,666 $88,400.00
32 1,852 $100,800.00
32 1,620 $96,700.00
32 1,692 $87,500.00
32 2,372 $114,000.00
32 2,372 $113,200.00
33 1,666 $87,500.00
32 2,123 $116,100.00
32 1,620 $94,700.00
32 1,731 $86,400.00
32 1,666 $87,100.00
28 1,520 $83,400.00
27 1,484 $79,800.00
28 1,588 $81,500.00
28 1,598 $87,100.00
28 1,484 $82,600.00
28 1,484 $78,800.00
28 1,520 $87,600.00
27 1,701 $94,200.00
28 1,484 $82,000.00
28 1,468 $88,100.00
28 1,520 $88,100.00
27 1,520 $88,600.00
27 1,484 $76,600.00
28 1,520 $84,400.00
27 1,668 $90,900.00
28 1,588 $81,000.00
28 1,784 $91,300.00
27 1,484 $81,300.00
27 1,520 $100,700.00
28 1,520 $87,200.00
27 1,684 $96,700.00
27 1,581 $120,700.00