Project Work

Group 13
17 October 2022

Note:Use Excel to complete your Project work and write your

answers in your project file also submit it before 15 Nov 2022.

• TABLE B.4: The data set is taken from Property Valuation Data
• TABLE B.4 is attached in a picture, please find this table .
• Using this table draw your conclusions/ answers .

QUESTION

Consider the Property Valuation data in Table B.4.

1. Fit a multiple linear regression model relating selling price to all nine
regressors.

2. Test for signifi cance of regression. What conclusions can you draw?
3. Use t tests to assess the contribution of each regressor to the model. Dis-
cuss your fi ndings.
4. What is the contribution of lot size and living space to the model given
that all of the other regressors are included?
5. Construct a normal probability plot of the residuals. Does there seem to
be any problem with the normality assumption?
6. Construct and interpret a plot of the residuals versus the predicted re-
sponse.
7. Construct the partial regression plots for this model. Does it seem that
variables currently in the model are not necessary?
8. Compute the studentized residuals and the R - student residuals for this
model. What information is conveyed by these scaled residuals?

9. Use the all - possible - regressions method to find the “ best ” set of
regressors.

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10. Use stepwise regression to select a subset regression model. Does this
model agree with the one found in the above part?
11. Analyze the housing price data for multicollinearity. Use the variance
inflation factors and the condition number of X ′ X .

12. Is multicollinearity a potential problem in this model?