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WIDENER UNIVERSITY
SCHOOL OF BUSINESS ADMINISTRATION
QA252 – Regression Project
100 Points
Thorpe
Fall 2020
Nassau County is located approximately 25 miles east of New York City. Data in the file GLENCOVE20FA
(available in the Week Module files) are from a sample of 30 single-family homes located in Glen Cove.
Variables included are the fair market value (in thousands of dollars), land area of the property (acres),
interior size of the house (square feet), and age (years).
Provide your answers to the questions below within this document. Additional Excel output can also be
copied and pasted into the document. Upload your completed WORD document using the assignment
link within the Weekly Module.
(1) Construct a correlation matrix of all variables.
•
(10) Which variable has the strongest linear relationship with fair market value of a home?
What is the correlation value?
(2) Develop a multiple regression model to predict fair market value of a home using all of the
independent variables.
•
(15) State the multiple regression equation.
•
(15) Interpret the meaning of all the slopes of the equation (be sure to use appropriate units of
measure).
•
(10) Interpret and explain the meaning of the adjusted r2.
•
(5) If you wanted to improve the adjusted r2, suggest an additional independent variable that
you might want to add to the model to help predict the fair market value of a home.
•
(10) Interpret and explain the meaning of the Standard Error.
•
(10) At the .05 level of significance, determine whether each independent variable makes a
significant contribution to the regression model. On the basis of these results, are all of the
independent variables significant in the model?
•
(10) Predict the fair market value for a house that has a land area of .25 acres, with an interior
size of 2200 square feet, and is 30 years old.
•
(15) Perform a residual analysis on your results. Are the regression assumptions valid for these
data?
Address
9 Sycamore Road
21 Jefferson St
38 Hitching Post Lane
4 Poppy Lane
5 Daniel Drive
15 Francis Terrace
23 Guilfoy Street
17 Carlyle Drive
8 Craft Avenue
22 Beechwood Ct.
14 Fox Street
1 Raynham Road
2 Jerome Drive
7 Valentine Street
38 Jefferson Street
15 Inwood Road
29 Meadowfield Lane
13 Westland Drive
79 Valentine Street
13 Fairmont Place
1 Prestwick Terrace
11 Clement Street
7 Woodland Road
36 Elm Avenue
17 Duke Place
12 Prospect Avenue
1 Buckeye Road
30 Ann Street
26 Broadfield Place
16 Jackson Street
Fair Market Value
($000)
522.9
425.0
539.2
628.2
490.4
487.7
370.3
777.9
347.1
756.8
389.0
889.0
452.2
412.4
338.3
334.3
437.4
644.0
387.8
399.8
356.4
346.9
541.8
388.0
564.0
454.4
417.3
318.8
519.8
310.2
Property Size
(acres)
0.2297
0.2192
0.1630
0.4608
0.2549
0.2290
0.1808
0.5015
0.2229
0.1300
0.1763
1.3100
0.2520
0.1148
0.1693
0.1714
0.3849
0.6545
0.1722
0.1435
0.2755
0.1148
0.3636
0.1474
0.2281
0.4626
0.1889
0.1228
0.1492
0.0852
Age
56
61
39
28
56
98
58
17
62
25
64
62
56
22
74
62
54
56
62
88
81
107
55
51
50
92
64
54
44
104
House Size
(square feet)
2448
1942
2073
2707
2042
2089
1433
2991
1008
3202
2230
1848
2100
1846
1331
1344
1822
2479
1605
2080
2410
1753
1884
2050
2978
2132
1551
1129
1674
1184
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