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  • Business Analytics (MGT 555) Individual Assignment Assignment 2

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    Syakirah Husni
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    This document contains two assignments analyzing student grade and home price data. For the student grade data, the summary shows regression statistics, coefficients, and that student grades have a significant effect on final exam scores. For the home price data, the multiple regression model shows R-square is 72% and sqft and baths significantly influence home price, while beds does not. The best model is shown to eliminate the beds variable.

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    This document contains two assignments analyzing student grade and home price data. For the student grade data, the summary shows regression statistics, coefficients, and that student grades have a significant effect on final exam scores. For the home price data, the multiple regression model shows R-square is 72% and sqft and baths significantly influence home price, while beds does not. The best model is shown to eliminate the beds variable.

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    2K views5 pages

    Business Analytics (MGT 555) Individual Assignment Assignment 2

    Uploaded by

    Syakirah Husni
    This document contains two assignments analyzing student grade and home price data. For the student grade data, the summary shows regression statistics, coefficients, and that student grades have a significant effect on final exam scores. For the home price data, the multiple regression model shows R-square is 72% and sqft and baths significantly influence home price, while beds does not. The best model is shown to eliminate the beds variable.

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    of 5

    BUSINESS ANALYTICS

    (MGT 555)
    INDIVIDUAL ASSIGNMENT
    ASSIGNMENT 2

    Prepared by:
    NURUL SYAKIRAH BINTI MOHD HUSNI
    2018263578
    BA232 2A

    Prepared for:
    DR. NORSHIMA BINTI HUMAIDI
    QUESTION 1
    Based on the data student grades:

    Figure 1 : Summary Output

    Final Exam Residual Plot


    40
    Residuals

    20
    0
    -20 50 60 70 80 90 100 110
    -40
    Final Exam

    Figure 2: Final Exam Residual Plot

    Based on the result findings from the data student grade, the data in the figure 1 above
    shows the key regression results that include regression statistics, ANOVA and the
    coefficients of the student grades. Based on the hypothesis, the H0: 𝛽1 is equal to 0 student
    grades has no effect on final exam and the H1: 𝛽1 is not equal to 0 student grades has
    significant effect on final exam. According to the result findings in the regression statistics, it
    shows the R-Square is 0.300622 which is equals to 30% meanwhile, the standard error is
    9.431160618. This indicates that 30% of variation in final exam is explained by midterm
    while the remaining 70% is explained by other variables. This indicates that the model is not
    in good fit.

    Next, according to the ANOVA, the p-value indicate the value of (0.000) for the F-
    test (23.2114906) which is less than the level of significance (0.05). Therefore, the null
    hypothesis is rejected. Meaning which, final exam is statistically significant variable in
    explaining the variation in student. Moreover, the p-value (0.000) for final exam regression
    coefficient is less than 0.005. While, the β 1 is equals to 0.486, which is between the lower
    value (0.283) and the upper value (0.688). Therefore, we can conclude that the coefficient is
    statistically not equal to zero and the null hypothesis is rejected. Based on the figure 3 below,
    it shows the residual analysis, the result indicates that there is no outliers appear to exist
    because all the standard residuals value is less than negative or positive 3.

    Figure 3: Residual Output


    QUESTION 2
    Based on the data home price:

    Figure 4: Summary Output

    Based on the result findings from the data home price, the data in the figure 4 above
    shows the multiple regression model that include regression statistics, ANOVA and the
    coefficients of the home price. Based on the hypothesis, the hypothesis 1 is beds is positively
    influence home price meanwhile, hypothesis 2 is sqft and baths is positively influence home
    price. Based on to the result findings, this model also shown that there is no multicollinearity
    issue because the association between Sqft and Beds is below 0.7 which are (0.530) and
    (0.284). In the regression statistics, it shows the R-Square is 0.72367178 which is equals to
    72% of variation in home price explained by sqft, baths and beds. Meanwhile, the standard
    error is 74984.98417. This indicates that 72% of variation in home price indicates that the
    model is on good fit.

    On the other hand, the p-value (0.000) for the F-test is less than the level of
    significance (0.05). For the first model of both sqft and baths shows that the p-value is
    0.010779404 and 0.000854652. We can conclude that that sqft and baths is significantly
    influence the home price where the p-value is less than 0.05. Meanwhile, the beds p-value is
    0.9782636 which is more than 0.05 was not shown significant compare to others variable. So,
    the beds need to eliminate in this case.
    Figure 5: Best Model

    Based on the figure 5 above, it shows the best model after eliminate the beds variable
    since the variable was not significant. In conclusion, the best model for this case is eliminate
    the one factors mentioned above which is beds. Thus, the model should has only sqft and
    baths variable which is shown significantly influence home price.

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