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 ofFloorArea and AssessmentValue. Is FloorArea a significant predictor of AssessmentValue?
Construct a scatter plot in Excel with Ageas the independent variable and AssessmentValueas 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?
In addition, Constructa 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?
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?
FloorArea (Sq.Ft.)
4790
4720
5940
5720
3660
5000
2990
2610
5650
3570
2930
1280
4880
1620
1820
4530
2570
4690
1280
4100
3530
3660
1110
2670
1100
5810
2560
2340
3690
3580
3610
3960
Offices
4
3
4
4
3
4
2
2
4
2
3
2
3
1
2
2
2
2
1
3
2
2
1
2
1
4
2
3
2
3
2
3
Entrances
2
2
2
2
2
2
1
1
2
1
2
1
2
2
1
2
1
2
1
1
2
2
2
2
1
3
2
1
2
2
1
2
Age
8
12
2
34
38
31
19
48
42
4
15
31
42
35
17
5
13
45
45
27
41
33
50
39
20
17
24
5
15
27
8
17
AssessedValue ($’000)
1796
1544
2094
1968
1567
1878
949
910
1774
1187
1113
671
1678
710
678
1585
842
1539
433
1268
1251
1094
638
999
653
1914
772
890
1282
1264
1162
1447
