Lesson 8: Introduction to Multiple Regression
February 15, 2022
Review:
- Measuring forecast error with MAD and RMSE
- Time Series Analysis + Video assignment
- Submit assignment via Google Forms
Presentation:
- Intro to Multiple Regression
- y-hat = B0 + B1*x1 + B2*x2 + …. Bn*xn
- Multiple Regression with XL Miner
- Simple Multiple Regression Demo (Sheets)
- Another demo with Sample Real Estate Data
- Write the linear equation for y-hat by hand
- Regression Output Interpretation
- 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 downloading the XL Miner Analysis ToolPak in Google Sheets
- If not possible, use Microsoft Excel with the Analysis ToolPak Add-in
- 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
- Type the linear equation for y-hat in a separate cell
- List, in rank order, the variables from most significant to least significant
