## Exam 2 Part 1 Instructions

February 24, 2019

**Exam 2 Part 1 Instructions**

For Exam 2 you will build a multiple regression model as a “take-home” project. You will use the model during the exam. The model should be complete and you should have a 1-page print-out in hand when you arrive for the exam. See below for details.

- Multiple Regression Analysis
- Select the worksheet corresponding to the last digit of your PID from this file: PuebloRealEstate_Exam2Data_ByPID
- Build a regression model to estimate selling price
- You must use 1 interaction variable
- You must use 1 or more Dummy variables

- Prepare a 1-page summary of your model, including
- Regression Output with highlights
- y-hat equation (in equation format, not just a copy of the regression output)
- Define the variables used in the model (if interaction, how is it calculated?)
- Demonstrate how to apply the model
- What “selling price” estimate would your model produce for a home in Belmont neighborhood, 3 bedroom, 2 bath, 1800 sqft

- Think of your 1-page summary as a “poster” that explains your model
- It should be clear and easy to understand
- It should provide helpful text to explain different aspects of the model

- Be prepared to answer questions about your regression model
**You will use your model during Exam 2**and then turn it in after completion of the exam- Exam is “open notes” (so bring anything useful) but you may only submit the 1-page summary (I won’t accept a stack of different model outputs)