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Lab Workshop 2 - instructions

# Lab Workshop 2 - instructions - annual return Include...

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ITIS 1P97 Fall 2011 Lab Workshop 2 Regression Analysis Example 1 (from text ME 3.15 and 3.16) Simple Regression Plot years of experience versus the fund’s annual return Add a linear regression line to the plotted data. Include the regression equation and the R 2 value How good a fit is the linear regression model? How much of the variance in fund value does this linear regression model explain? Use the LINEST function to get the regression line parameters Calculate the regression line estimates for each fund (TREND function). Use these values to calculate the residuals Plot the residuals against the independent variable Are there any violations of the assumptions associated with regression analysis? What would you estimate the return to be of a fund where the fund manager had 7 years of experience? Multiple Regression Develop a multiple regression analysis using both fund type and years of experience to predict annual return. Include residual calculations and a plot of residuals for both independent variables.
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Unformatted text preview: annual return. Include residual calculations and a plot of residuals for both independent variables. How much of the variation is explained by these two independent variables? What is your estimate of the annual return of a stock fund where the fund manager had 7 years of experience? Example 2 – Resale Value of Long’s Automobile (from Text – Cases pg.144) Do a scatter diagram for each of the numerical independent variables. Add trend lines. Use the IF function to create dummy variables Do a CORRELATION analysis to see how each factor is related to the other factors Do a multiple regression analysis on all five factors How well does this model explain the resale price of a car? What factors are the most important in predicting the resale value of a car? What would you estimate to be the resale value of a 1999 car with 29,300 miles, manual transmission, leather interior and air conditioning?...
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