Assignment 3 - Multiple Regression
Data
The multiple regression
assignment can be done individually or in a team
consisting of any number of students. You or your team
should gather data on a dependent variable and
independent variables that are of interest to you,
subject to the following limitations:
- There should be at
least 30 observations in your data set.
- The data can be
either cross-section or time series.
- As in Assignment 1,
there must be some logical reason for the number
of observations that you choose.
- The minimum number of
independent variables in your model should be two
plus one for each person in your team.
- At least one of the
independent variables must be a dummy variable.
- No more than half of
the independent variables can be dummy variables.
- Do not use the data
from the marketing survey.
Analysis
Use your data and a
spreadsheet program to do to perform a multiple
regression analysis for your variables. The analysis
should include the following:
- A complete
description of the model that you are going to
estimate. Indicate the general model that you are
going to estimate. Discuss what you think the
relationship is between the dependent variable
and the independent variables, and what that
leads you to conclude about the expected signs of
the coefficients in the model. Determine the correlation
between each of the independent variables and the dependent
variable.
- A printout of the
computer results.
- Give an
interpretation of the coefficient of
determination (r2). List the adjusted r2.
Use the F-test to test the validity of the model as a whole at
a 5% level of significance.
- Give an
interpretation of each of the estimated
coefficients. Do the signs of the coefficients
match your expectations? At the 5% level of significance, test whether each of the
variables makes a significant contribution to the model .
- Conduct an analysis
to determine if any problems exist.
- Use your model to
make a prediction for any combination of values
for your independent variables.
Final Output
Please submit a copy of
your analysis in the form of a report by October 17 16. If the output is a hard copy, it should be
typed on 8 ½ x 11 or A4 paper. Please do not submit the
report in a special report cover; a stable in the upper
left hand corner would be adequate. The output may also
be submitted as an e-mail attachment.
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