Q: Use the dataset below to find a multiple regression model to predict the salary as a function of all five of the adjusted cost of living rates. Best-Fit the model and determine the best model for predicting salary using the P-value criterion. Explain each step and keep the outputs of each rerun on the same worksheet or on separate labeled Clearly identify which model is the final model. (Solve in Excel) Cost of Living Adjustments City Comparative Salary Groceries Housing Utilities Transportation Healthcare Atlanta $60,482.00 15% 25% -10% 6% 5% Austin $57,530.00 -8% 13% -1% -1% 6% Boston $85,904.00 16% 141% 43% 11% 33% Charleston $60,904.00 18% 22% 11% -7% 10% Charlotte $58,012.00 11% 5% 2% -2% 6% Chicago $70,000.00 23% 73% 1% 18% 2% Columbus $54,578.00 1% -1% -5% -6% -1% Dallas $58,072.00 12% -4% -3% 1% 5% DC $87,892.00 20% 214% -6% 13% -3% Denver $65,843.00 7% 64% -8% 1% 11% Detroit $57,590.00 -2% 15% 0% 6% -1% Indianapolis $55,120.00 3% 4% -11% -6% 1% Los Angeles $83,795.00 16% 168% 10% 29% 13% Lousiville $55,602.00 1% 2% -13% 5% -8% Minneapolis $65,060.00 16% 43% -10% 10% 8% New Orleans $57,530.00 10% 24% -17% -5% 1% New York $136,024.00 37% 479% 26% 30% 19% Philadelphia $72,048.00 26% 72% 17% 10% 3% Phoenix $57,651.00 7% 21% -8% 2% 1% Pittsburgh $59,578.00 9% 21% -3% 14% -1% Portland $77,349.00 25% 108% -18% 19% 15% San Diego $86,446.00 18% 187% 18% 27% 15% San Francisco $105,241.00 38% 304% 3% 26% 22% Seattle $83,253.00 33% 133% 2% 21% 24% St. Louis $56,084.00 14% -9% 13% 1% 4%
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
Q: Use the dataset below to find a multiple regression model to predict the salary as a
| Cost of Living Adjustments | ||||||
| City | Comparative Salary | Groceries | Housing | Utilities | Transportation | Healthcare |
| Atlanta | $60,482.00 | 15% | 25% | -10% | 6% | 5% |
| Austin | $57,530.00 | -8% | 13% | -1% | -1% | 6% |
| Boston | $85,904.00 | 16% | 141% | 43% | 11% | 33% |
| Charleston | $60,904.00 | 18% | 22% | 11% | -7% | 10% |
| Charlotte | $58,012.00 | 11% | 5% | 2% | -2% | 6% |
| Chicago | $70,000.00 | 23% | 73% | 1% | 18% | 2% |
| Columbus | $54,578.00 | 1% | -1% | -5% | -6% | -1% |
| Dallas | $58,072.00 | 12% | -4% | -3% | 1% | 5% |
| DC | $87,892.00 | 20% | 214% | -6% | 13% | -3% |
| Denver | $65,843.00 | 7% | 64% | -8% | 1% | 11% |
| Detroit | $57,590.00 | -2% | 15% | 0% | 6% | -1% |
| Indianapolis | $55,120.00 | 3% | 4% | -11% | -6% | 1% |
| Los Angeles | $83,795.00 | 16% | 168% | 10% | 29% | 13% |
| Lousiville | $55,602.00 | 1% | 2% | -13% | 5% | -8% |
| Minneapolis | $65,060.00 | 16% | 43% | -10% | 10% | 8% |
| New Orleans | $57,530.00 | 10% | 24% | -17% | -5% | 1% |
| New York | $136,024.00 | 37% | 479% | 26% | 30% | 19% |
| Philadelphia | $72,048.00 | 26% | 72% | 17% | 10% | 3% |
| Phoenix | $57,651.00 | 7% | 21% | -8% | 2% | 1% |
| Pittsburgh | $59,578.00 | 9% | 21% | -3% | 14% | -1% |
| Portland | $77,349.00 | 25% | 108% | -18% | 19% | 15% |
| San Diego | $86,446.00 | 18% | 187% | 18% | 27% | 15% |
| San Francisco | $105,241.00 | 38% | 304% | 3% | 26% | 22% |
| Seattle | $83,253.00 | 33% | 133% | 2% | 21% | 24% |
| St. Louis | $56,084.00 | 14% | -9% | 13% | 1% | 4% |
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