Regression Analysis

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Chapter 4 Assignment 1. The Hospital Data tab of the Chapter 4 Assignment Data spreadsheet contains information on the total expenses of hospitals and the number of admissions in those hospitals. Perform a regression on this data with total expenses as the Y variable, and answer the following questions. (a) Find the equation that relates total expenses (Y) to number of admissions (X). Ῠ= | 1.41+.67X | (b) Predict the total expenses of a hospital with 90,000 admissions. 61.71 Million (c) Find: SST: 30,670 SSE: 788.7739 SSR: 29,881.226 and MSE: 2,555.8333 (d) Find the coefficient of determination, and interpret what this value means in the context of this hospital data. R2= 0.9742819 The value of R2 is very high at 97.4%. It means that the hospital data very well establishes the relationship between expenses and number of admission (e) Find the significance of F. Based on this value, is our model statistically significant at the 5% level? Is there a relationship between total expenses and number of admissions? MSM= 29881.226 F Value = 11.691383 Using F table for (DFM, DFE) = (1,12) F value = 4.75 Significance of F =.049943034 Yes, the model is statistically significant at 5% level & Yes there is a relationship between total expenses and number of admissions. 2. The Housing Data tab of the Chapter 4 Assignment Data spreadsheet contains information on the sales prices of houses, their square footage, and their age. Perform a regression on this data with sales price as the Y variable, and answer the following questions. (a) Find the equation that relates sales price (Y) to square footage (X1) and age (X2). Y = 9735 + 40.708 X1 - 346.174 X2 (b) Estimate the sales price of a home with square footage 2,000 and age 20. Price with X1 = 2000 and X2 = 20 Y= 84,229.12 (c) Find the coefficient of determination, and

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