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? 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
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.
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?
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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