Question

Using the data in the Excel file Home Market Value, develop a multiple regression model for estimating the market value as a function of house age and house size. Predict the value of a house that is 30 years old and has 1800 square feet, and also predict the value of a house that is 5 years old and has 2800 square feet.

Conduct your analysis using the following Multiple 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 Anaysis>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 regression coefficients as follows: Y=β₀ + β₁X₁ + β₂X₂. Please note that the regression coefficients are the slope coefficients and reflect the influence that each factor has on the response variable. Make predictions as required.
10. Tell the story. Explain the meaning of the analysis using everyday words.
    
    
    Data:
    

    Home Market Value
    House Age	Square Feet	Market Value
    27	1,484	$   79,800.00
    27	1,701	$   94,200.00
    27	1,520	$   88,600.00
    27	1,484	$   76,600.00
    27	1,668	$   90,900.00
    27	1,484	$   81,300.00
    27	1,520	$ 100,700.00
    27	1,684	$   96,700.00
    27	1,581	$ 120,700.00
    28	1,520	$   83,400.00
    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
    28	1,484	$   82,000.00
    28	1,468	$   88,100.00
    28	1,520	$   88,100.00
    28	1,520	$   84,400.00
    28	1,588	$   81,000.00
    28	1,784	$   91,300.00
    28	1,520	$   87,200.00
    32	1,914	$ 104,400.00
    32	1,842	$   93,300.00
    32	1,836	$ 101,900.00
    32	1,732	$   87,600.00
    32	1,791	$   89,200.00
    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
    32	2,123	$ 116,100.00
    32	1,620	$   94,700.00
    32	1,731	$   86,400.00
    32	1,666	$   87,100.00
    33	1,812	$   90,000.00
    33	1,812	$   91,000.00
    33	2,028	$ 108,500.00
    33	1,850	$   96,000.00
    33	1,666	$   88,400.00
    33	1,666	$   87,500.00

Answer 1

from overall analysis we can say that market value is depends upon only square feet .

because square feet is significant .