Multiple Linear Regression

Project Description:

The present study shows data for BMW cars in Germany that include: power in rpm, gas tank in liters, fuel efficiency in 1/100 k
(standstill), number of cylinders, and base price for each car in dollars. A researcher is interested in determining if there is a sig
listed. A sample of 175 cars is collected and analyzed.
We will use the Excel Data Analysis Add-in to build a multiple regression model and identify and interpret the slopes in the mod
determination. We will test a hypothesis and compare the observed level of significance (p-value) with alpha and decide if we c
We will identify if there are any insignificant variables and describe the reason behind the significance/insignificance.

Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or type v
answers.

Steps to Perform:

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Multiple Linear Regression

Project Description:

The present study shows data for BMW cars in Germany that include: power in rpm, gas tank in liters, fuel efficiency in 1/100 kilometers, t
(standstill), number of cylinders, and base price for each car in dollars. A researcher is interested in determining if there is a significant rela
listed. A sample of 175 cars is collected and analyzed.
We will use the Excel Data Analysis Add-in to build a multiple regression model and identify and interpret the slopes in the model. We will
determination. We will test a hypothesis and compare the observed level of significance (p-value) with alpha and decide if we can conclude
We will identify if there are any insignificant variables and describe the reason behind the significance/insignificance.

Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or type values, unle
answers.

Steps to Perform:

Instructions

Start Excel. Download and open the workbook named:

Multiple_Linear_Regression_Start
On the Data sheet, go to the Data Tab and click on Data Analysis. Double click on Regression. For Input Y Range, select the range G1:
Labels box and select Output Range under Output Option and type I1.
In cell C3, find the Y-Intercept (B0) of the Regression Equation.
In cell C4, find the regression coefficient (B1) of the independent variable "Power".
In cell C5, find the regression coefficient (B2) of the independent variable "Gas Tank".
In cell C6, find the regression coefficient (B3) of the independent variable "Fuel Efficiency".
In cell C7, find the regression coefficient (B4) of the independent variable "0-100 kmph".
In cell C8, find the regression coefficient (B5) of the independent variable "Cylinders".
Interpret the meaning of the regression coefficient (B1) of the independent variable "Power". Choose your answer from the dropdown menu in
Interpret the meaning of the regression coefficient (B2) of the independent variable "Gas Tank". Choose your answer from the dropdown men
What is the null hypothesis we are testing in this multiple regression model? Choose your answer from the dropdown menu in cell C11.
What is the alternative hypothesis we are testing in this multiple regression model? Choose your answer from the dropdown menu in cell C12
In cell C13, predict the price of a car where power=4,000 rpm, gas tank=57 liters, fuel efficiency=4.1/km, time 0-100=7.5 seconds and has 4
In cell C14, find the Coefficient of Determination (R2).
In cell C15, find the Standard Error (SE).
In cell C16, find the Regression Sum of Squares (SS).
In cell C17, find the Sum of Squared Error (SSE).
In cell C18, find the Total Sum of Squares (SST).
In cell C19, find the Mean Square Regression (MSR).
In cell C20, find the Mean Squared Error (MSE).
In cell C21, find the value of the F-Test Statistic.
In cell C22, find the p-value.
At alpha = 0.05, do you reject or not reject the null hypothesis? Choose your answer from the dropdown menu in cell C23.
Justify the answer in cell C21. Choose your answer from the dropdown menu in cell C24.
Are any of the independent variables insignificant at alpha = 0.05? Choose your answer from the dropdown menu in cell C25.
Justify the answer in cell C22. Choose your answer from the dropdown menu in cell C26.
Save your file and submit for grading.
meters per hour
ndependent variables

the coefficient of
el was able to explain.

redit for your

Points
Possible

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Car x1: Power x2: Gas Tank x3: Fuel Efficiency x4: 0-100 kmph x5:
(rpm) (liters) (l/100km) (sec) Cylinders
1 4,350 60 5.8 8.9 4
2 4,400 60 5.1 8.9 3
3 4,800 60 5.3 7.6 4
4 5,000 60 6.1 7.3 4
5 5,000 60 5.5 7.2 4
6 5,000 60 6.4 7.5 4
7 5,000 60 6.4 5.9 4
8 5,000 60 6.8 5.7 4
9 5,200 60 6.1 5.9 4
10 5,200 60 5.9 5.8 4
11 5,800 60 7.9 5.5 6
12 5,800 57 8.2 5.3 6
13 5,500 60 7.4 5.5 6
14 5,500 57 7.7 5 6
15 4,000 57 4.3 10.9 4
16 4,000 57 3.9 10.7 4
17 4,000 57 4.3 9 4
18 4,000 57 4.7 9.2 4
19 4,000 57 4.3 9 4
20 4,000 57 4 8.6 4
21 4,000 57 4.5 8.8 4
22 4,000 57 4.1 8 4
23 4,000 57 4.5 7.5 4
24 4,000 57 4.5 7.5 4
25 4,000 57 4.7 7.5 4
26 4,000 57 3.9 7.9 4
27 4,000 57 4 7.3 4
28 4,000 57 4.4 7.4 4
29 4,400 57 4.9 6.8 4
30 4,400 57 4.9 6.8 4
31 4,400 57 4.6 6.5 4
32 4,000 57 4.9 5.6 6
33 4,000 57 4.9 5.6 6
34 4,000 57 5.2 5.3 6
35 4,000 57 5.2 5.3 6
36 4,000 57 4.9 5.6 6
37 4,000 57 5.2 5.3 6
38 4,400 57 5.4 4.8 6
39 4,400 57 5.4 4.8 6
40 5,500 60 8.8 4.3 6
41 5,500 60 8.8 4.3 6
42 7,000 60 8.8 4.2 6
43 4,350 60 5.9 9.4 4
44 4,400 60 5.4 9.2 3
45 5,000 60 6.4 7.5 4
46 5,000 60 6.8 7.6 4
47 5,000 60 5.9 7.5 4
48 5,000 60 6.8 7.7 4
49 5,000 60 6.8 6 4
50 5,000 60 7.1 5.9 4
51 5,200 60 6.4 6 4
52 5,200 60 6.2 6 4
53 5,800 60 8.1 5.5 6
54 5,800 60 7.9 5.1 6
55 5,500 60 6.8 5.1 6
56 5,500 57 7.2 5 6
57 4,000 57 4.5 11.2 4
58 4,000 57 4.1 11.2 4
59 4,000 57 4.5 9.2 4
60 4,000 57 4.5 9.2 4
61 4,000 57 4.3 8.9 4
62 4,000 57 4.7 9.2 4
63 4,000 57 4.3 8.3 4
64 4,000 57 4.7 7.7 4
65 4,000 57 4.7 7.7 4
66 4,000 57 4.9 7.8 4
67 4,000 57 4.1 8.2 4
68 4,000 57 4.3 7.6 4
69 4,000 57 4.7 7.6 4
70 4,400 57 5.1 6.9 4
71 4,400 57 5.1 6.9 4
72 4,400 57 4.9 6.7 4
73 4,000 57 5.1 5.6 6
74 4,000 57 5.1 5.6 6
75 4,000 57 5.4 5.4 6
76 4,000 57 5.4 5.4 6
77 4,000 57 5.1 5.6 6
78 4,000 57 5.4 5.4 6
79 4,400 57 5.6 4.9 6
80 4,400 57 5.6 4.9 6
81 5,000 60 6.6 7.9 4
82 5,000 60 7 8 4
 83 5,000 60 6.1 8 4
84 5,000 60 6.7 8.1 4
85 5,000 60 6.7 6.1 4
86 5,000 60 6.8 6.2 4
87 5,200 60 5.9 6.1 4
88 5,200 60 6.3 6.2 4
89 5,800 60 8.1 5.7 6
90 5,800 60 8 5.3 6
91 5,500 60 7 5.1 6
92 5,500 60 7.4 5 6
93 4,000 57 4.5 9.7 4
94 4,000 57 4.5 9.3 4
95 4,000 57 4.5 9.3 4
96 4,000 57 4.9 8 4
97 4,000 57 5.1 8 4
98 4,000 57 4.6 7.8 4
99 4,000 57 4.8 7.8 4
100 4,000 57 4.6 7.8 4
101 4,000 57 4.8 7.8 4
102 4,400 57 5.1 8 4
103 4,400 57 4.7 6.4 4
104 4,000 57 5.1 5.7 6
105 4,000 57 5.4 5.4 6
106 4,000 57 5.1 5.7 6
107 4,000 57 5.4 5.4 6
108 4,300 57 5.6 4.9 6
109 4,400 57 5.6 4.9 6
110 5,000 60 6.1 7.3 4
111 5,000 60 6.8 7.4 4
112 5,000 60 5.8 7.3 4
113 5,000 60 6.6 7.6 4
114 5,000 60 6.6 5.9 4
115 5,000 60 6.8 5.6 4
116 5,200 60 6.1 5.9 4
117 5,200 60 5.9 5.8 4
118 5,800 60 7.9 5.4 6
119 5,800 60 8.2 5.2 6
120 5,500 60 7.4 5.2 6
121 5,500 60 7.7 5 6
122 4,000 57 4.2 8.6 4
123 4,000 57 4.7 7.5 4
124 4,000 57 4.8 7.5 4
125 4,000 57 4.2 7.3 4
126 4,000 57 4.4 7.4 4
127 4,000 57 5 6.7 4
128 4,400 57 4.6 6.5 4
129 4,000 57 4.9 5.5 6
130 4,000 57 5.2 5.2 6
131 4,400 57 5.4 4.7 6
132 5,500 60 8.8 4.3 6
133 7,000 60 8.8 4.2 6
134 6,250 60 8.5 3.8 6
135 6,250 60 8.5 3.8 6
136 5,000 60 6.6 8.2 4
137 5,000 60 6.2 8.2 4
138 5,000 60 6.8 6.4 4
139 5,000 60 7 6.5 4
140 5,200 60 6.6 6.4 4
141 5,200 60 6.4 6.4 4
142 5,800 60 8.1 5.6 6
143 5,800 60 8.5 5.6 6
144 5,500 60 6.8 5.4 6
145 5,500 60 7.3 5.4 6
146 4,000 57 5.1 8.2 4
147 4,000 57 4.8 8.1 4
148 4,400 57 5.2 7.3 4
149 4,400 57 5.1 7.1 4
150 4,000 57 5.3 5.9 6
151 4,000 57 5.7 5.2 6
152 5,500 60 9.1 4.6 6
153 7,000 60 9.1 4.5 6
154 5,000 60 6.4 7.5 4
155 5,000 60 6.9 7.6 4
156 5,000 60 5.8 7.5 4
157 5,000 60 6.6 7.8 4
158 5,000 60 6.6 6.1 4
159 5,000 60 6.8 5.8 4
160 5,200 60 6.1 5.9 4
161 5,200 60 5.9 5.9 4
162 5,800 60 8.1 5.5 6
163 5,800 60 8.3 5.3 6
164 5,500 60 6.6 5.1 6
165 5,500 60 7.1 5 6
166 4,000 57 4.7 9.2 4
167 4,000 57 4.3 9 4
168 4,000 57 4.7 7.7 4
169 4,000 57 4.9 7.7 4
170 4,000 57 4.2 7.5 4
171 4,000 57 4.6 7.6 4
172 4,400 57 4.7 6.7 4
173 4,000 57 5.1 5.6 6
174 4,000 57 5.3 5.3 6
175 4,400 57 5.6 4.8 4
Y: Base price in
Germany SUMMARY OUTPUT
28,500
30,900 Regression Statistics
34,250 Multiple R 0.7237011347
33,100 R Square 0.5237433324
35,450 Adjusted R Square 0.5096528985
37,950 Standard Error 9968.8046999
37,400 Observations 175
39,900
40,450 ANOVA
45,100 df SS
43,950 Regression 5 18469295016.05
46,450 Residual 169 16794724347.38
46,650 Total 174 35264019363.43
49,150
31,850 Coefficients Standard Error
33,300 Intercept 271868.76044 59214.44360467
33,750 x1: Power (rpm) 8.3768564499 3.074890651926
36,250 x2: Gas Tank (liters) -4547.5183391 1079.492292856
34,940 x3: Fuel Efficiency (l/100km) 3321.4004556 1874.978199881
35,200 x4: 0-100 kmph (sec) -3086.222768 833.2501680758
37,700 x5: Cylinders 487.20506869 1409.417956063
36,500
36,500
37,690
39,000
37,950
37,950
40,450
39,650
41,100
41,800
45,550
46,740
48,050
49,240
47,750
50,250
50,600
52,500
71,800
73,000
80,300
31,400
32,600
36,000
38,500
37,150
39,650
39,150
42,800
42,200
46,850
45,850
50,600
50,550
53,050
33,300
35,000
35,200
36,390
36,900
39,400
38,250
38,250
39,440
40,750
39,650
39,650
42,150
41,400
42,850
43,550
47,300
48,490
49,800
50,990
49,500
52,000
54,250
52,350
37,750
40,250
38,950
41,450
41,700
46,350
46,150
48,650
47,950
52,600
52,350
54,850
36,300
37,500
38,700
40,000
42,500
40,250
42,750
41,450
43,950
43,150
47,500
49,050
51,550
51,300
53,800
53,750
56,050
36,750
39,250
37,550
40,050
41,400
45,000
43,300
47,950
48,100
51,700
50,000
52,500
38,600
39,500
42,000
 40,800
43,300
43,000
44,800
49,600
52,100
54,600
73,700
81,000
142,600
148,500
43,900
44,700
48,200
52,850
50,400
55,050
54,000
56,500
58,350
60,850
46,300
47,900
49,800
51,900
55,550
60,550
79,700
86,100
36,750
39,250
37,550
40,050
41,400
43,900
43,300
47,950
48,100
50,600
52,150
54,650
37,800
38,600
39,500
42,000
40,800
43,300
44,800
49,300
51,800
54,600
 MS F Significance F
3693859003.2 37.170135016 1.3783764E-25
99377067.144

t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
4.5912575361 8.567267E-06 154973.500831 388764.02006 154973.50083 388764.02006
2.7242778356 0.0071218968 2.30671343825 14.446999462 2.3067134383 14.446999462
-4.2126454901 4.097516E-05 -6678.5445574 -2416.4921208 -6678.5445574 -2416.4921208
1.7714341723 0.0782908151 -379.99484765 7022.7957589 -379.99484765 7022.7957589
-3.7038369583 0.0002873175 -4731.1422976 -1441.3032384 -4731.1422976 -1441.3032384
0.3456782047 0.730014482 -2295.1275489 3269.5376863 -2295.1275489 3269.5376863
Multiple Linear Regression

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Multiple Linear Regression
Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste

On the Data sheet, go to the Data Tab and click on Data Analysis. Double click on Regression. For Input Y Range
Option and type I1.

In cell C3, find the Y-Intercept (B0) of the Regression Equation.

In cell C4, find the regression coefficient (B1) of the independent variable "Power".
In cell C5, find the regression coefficient (B2) of the independent variable "Gas Tank".
In cell C6, find the regression coefficient (B3) of the independent variable "Fuel Efficiency".
In cell C7, find the regression coefficient (B4) of the independent variable "0-100 kmph".
In cell C8, find the regression coefficient (B5) of the independent variable "Cylinders".
Interpret the meaning of the regression coefficient (B1) of the independent variable "Power". Choose your answer from

Interpret the meaning of the regression coefficient (B2) of the independent variable "Gas Tank". Choose your answer

What is the null hypothesis we are testing in this multiple regression model? Choose your answer from the dropdown
What is the alternative hypothesis we are testing in this multiple regression model? Choose your answer from the dro
In cell C13, predict the price of a car where power=4,000 rpm, gas tank=57 liters, fuel efficiency=4.1/km, time 0-100
In cell C14, find the Coefficient of Determination (R2).
In cell C15, find the Standard Error (SE).
In cell C16, find the Regression Sum of Squares (SS).
In cell C17, find the Sum of Squared Error (SSE).
In cell C18, find the Total Sum of Squares (SST).
In cell C19, find the Mean Square Regression (MSR).
In cell C20, find the Mean Squared Error (MSE).
In cell C21, find the value of the F-Test Statistic.
In cell C22, find the p-value.
At alpha = 0.05, do you reject or not reject the null hypothesis? Choose your answer from the dropdown menu in cell

Justify the answer in cell C21. Choose your answer from the dropdown menu in cell C24.

Are any of the independent variables insignificant at alpha = 0.05? Choose your answer from the dropdown menu in c
Justify the answer in cell C22. Choose your answer from the dropdown menu in cell C26.
d, as you will not receive full credit for your answers.

e, select the range B1:F176. Check the Labels box and select Output Range under Output

271,868.76
8.38
-4547.52
3321.40
-3086.22
487.21
Increasing the "Power" will result in an increase in the price.
Increasing the volume of the "Gas Tank" will result in a decrease in
the price.
B0 = B1 = B2 = B3 = B4 = B5 = 0
At least one Bi is not equal to 0.
$ 38,587.53
0.52
9968.8
18,469,295,016.1
16,794,724,347.4
35,264,019,363.4
3,693,859,003.2
99,377,067.1
37.2
0.000000000000000000000000000000
Yes, I reject the null hypothesis.
There is enough evidence to conclude that there is a relationship
between the variables and the car's price.
x3 and x5 are insignificant.
When the p-value is less than alpha, the variable is significant.