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Regression modeling

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 assessed value consistent with what appears in the database?

Sample Solution

Unfortunately, there were found some limitations while conducting this research. The first one that has to be mentioned refers to the topic of this paper and its focus on Furniture designer business. As the area of research is very dynamic, the lack of literature and reliable up to date statistics was a real obstacle, while conducting this work. This lack includes the lack of detailed reliable data on key markets, the dearth of data on establishment huge Design industry how consumers choose their designer so that marketers can know how to influence them, the lack of longitudinal research to help in identifying trends in the market, the absence of comprehensive data on cross cultural. Of course, I would like to analyze furniture designing industry broader but because of the above lacks that is not possible. The research methodology of our research area consisted of both qualitative as well as quantitative methods and major limitation of Data Collection and the type of empirical data we need: The research process will include data about the perceptions of people about the furniture designing Industry. The reason is that according to problem I am measuring how much I would be successful in creating awareness and recognition in the furniture designing industry. In order to get this, I need to know about the preferences, awareness and satisfaction of customers about the designer’s product and services and industry. For data Collection, I will develop a research questionnaire from all customers and design in depth interviews and focus group for lead user or customers. The main reason for this is, I will get more insights from lead customer because they know almost everything about furniture designing industry. Secondly, these lead customers are also the opinion leaders. For example, I will leave a feedback to our consumers and will allow them to take time to fill these questions. The consumers have to choose between multiple choice questions. In the end, surveys questions and in-depth interviews + focus groups will help us to triangulate our data by using a mixture of quantitative and qualitative research methods.
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