Project Regression Modeling

ProIessor: PIlughoeIt
Course: 709
The purpose oI the project is to give you the opportunity to develop your own regression model
using a realistic data set. There are several data sets available on the web and I will post some oI
the more common ones on the D2L site. You should create an explanatory model in which
almost all, iI not all, oI the beta coeIIicients are statistically signiIicant. For explanatory models,
the purpose is not solely to achieve the highest multiple r-squared. The model should have good
Iit with variables being statistically signiIicant and where multicollinearity is addressed.
I don`t want just your Iinal model. I want to see the process you went through to achieve the
Iinal model. So Ior 'each run document your decisions, statistical tests and diagnostics which
were used to achieve the next version oI the model.
For your Iinal model, you need to show me all the appropriate statistical tests and provide an
explanation as to how to interpret your Iinal model.
OI course, it is possible that you go through many steps/runs beIore arriving at your Iinal model.
II that is the case, just jot down some rough notes and reexamine your process. I don`t want to
see more than 5 models. Thus, you have the option oI judiciously picking your most important
steps/runs in arriving at the model. II some oI your steps lead you to backtrack to a previous step
(since you may have arrived at a model that isn`t so good), you can still show those steps as well.
For some oI your supporting evidence, you may consider using the correlation matrix,
scatterplots, variable transIormations, statistical tests, practical considerations, etc.
This project will count as 2 homeworks and you won`t be assigned any other homework
assignments. Your project write-up and output should be printed and turned in the last day oI
class; I can allow a Iew days aIter that iI needed. We will allow some class time to go over any
questions or general procedures to help you with your project.
II you have any questions, please Ieel Iree to contact me via email.