Lesson 5: Intro to Multiple Regression

January 27, 2020

Review:

• Quiz 02
• Time Series Data and Forecasting
• Polynomial Regression
• XLMiner Add-On disabled by Google
• Coursera Getting Started with Google Sheets

Presentation:

• Intro to Multiple Regression
  • y-hat = B0 + B1*x1 + B2*x2 + …. Bn*xn
  • Multiple Regression with XL Miner and Statistics
    • Simple Multiple Regression Demo (Sheets)
    • Another demo with Sample Real Estate Data
  • Write the linear equation for y-hat by hand
• Regression Output Interpretation
  • coefficients and intercept
  • t-statistics
  • p-values
  • R² measures “goodness of fit” (explains % of variance)
  • p-value measures “significance” (probability of result by chance)
  • rank by significance

Activity:

• Try again to download the “XL Miner” Add-on
  • [if not i will demo]
• Complete Problems 1 and 2 using Sheets data
  • Prob 1: Use “y” as dependent variable, use “x1”, “x2” and “x3” as independent variables
  • Prob 2: Use “Dividend Payout” as dependent variable, use “Insider Ownership” and “Debt Ratio” as independent variables
  • Highlight R-squared, coefficients, t-statistics and p-values
  • Write the linear equation for y-hat by hand
  • List, in rank order, the variables from most significant to least significant
• Run Multiple Regression using East Pueblo RE Sales 2014-2016
  • Use “Selg Pr” (selling price) as dependent (y) variable, use “Bd”, “Ba”, “TtlGrSF”, and “DOM” as independent (x) variables
  • Highlight R-squared, coefficients, t-statistics and p-values
  • Write the linear equation for y-hat by hand
  • List, in rank order, the variables from most significant to least significant
• Add Results to your Portfolio
  • Include regression output with highlights
  • y-hat equation (typed or hand-written)
  • ranked list of independent variables from most to least significant

Assignment:

• Complain about not being able to download or install the XLMiner Add-On on the Google Help forum so we might get someone’s attention.
• Begin Getting Started with Google Sheets by Coursera
  • If you complete this course and earn the certificate, I’ll replace your lowest quiz score with a perfect score.