select any city in the US and select 40-45 houses that are for sale in that city. Any website can be used for example zillow.com, realtor.com, ect. I need to create an excel spreadsheet with a price range for example $100K to $500K with my dependent variable= Price of the home and Independent variable= SQFT, number of bedrooms, number of bathrooms, and age.
1) In the introductory paragraph, state why the dependent variable has been chosen for analysis. Then make a general statement about the model:
“The dependent variable _Price of the home__ is determined by variables _SQFT__, _number of bathrooms__, _number of bedrooms__, and _age__.”
2) In the second paragraph, identify the primary independent variable and defend why it is important.
“The most important variable in this analysis is ________ because _________.” In this paragraph, cite and discuss the two research sources that support the thesis, i.e., the model.
3) Write the general form of the regression model (less intercept and coefficients), with the variables named appropriately so reader can identify each variable at a glance:
Dep_Var = Ind_Var_1 + Ind_Var_2 + Ind_Var_3
For instance, a typical model would be written:
Price_of_Home = Square_Footage + Number_Bedrooms + Lot_Size
Price_of_Home: brief definition of dependent variable
Square_Footage: brief definition of first independent variable
Number_Bedrooms: brief definition of second independent variable
Age: brief definition of third independent variable
4) Define and defend all variables, including the dependent variable, in a single paragraph for each variable. Also, state the expectations for each independent variable. These paragraphs should be in numerical order, i.e., dependent variable, X1, then X2, etc.
In each paragraph, the following should be addressed:
5) In one paragraph, describe the data and identify the data sources.
6) Write the regression (prediction) equation:
Dep_Var = Intercept + c1 * Ind_Var_1 + c2 * Ind_Var_2 + c3* Ind_Var_3
7) Identify and interpret the adjusted R2 (one paragraph):
8) Identify and interpret the F test (one paragraph):
9) Identify and interpret the t tests for each of the coefficients (one separate paragraph for each variable, in numerical order):
10) Analyze multicollinearity of the independent variables (one paragraph):
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