Lab 8 Exercises - Multiple Regression in Excel and Minitab

# Lab 8 Exercises - Multiple Regression in Excel and Minitab...

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Lab 8: Multiple Regression: Excel and Minitab Objectives: We all agree that most economic models would require estimation of a multiple regression. The objective of today’s lab is to estimate multiple regression models in Excel and introduce you to data analysis in Minitab . Key Terms: 1. Multiple Regression 2. Partial Effects (Partial Derivatives) Readings: Specification Bias (Handout available on the course website.) Data : Lab 8 Exercises.xlsx .; Roses.dat (an ASCII data set) Exercises: Open Excel and Minitab . If you want us to review your results, open Word as well. Multiple Regression in Excel . 1. Open the spreadsheet du jour . First, estimate the following simple regression : 01 tt t Sales Prose v α =+ + . Review the results. Interpret the parameter estimate l 1 . Sales are dozens of roses sold and Prose is measured in \$/dozen. This model represents the demand for roses in Detroit. 2. Estimate the following multiple regression : 2 3 t t t Sales Prose Pcarn Dinc u β ββ + + + . How do you interpret the three parameter estimates: 12 3 ˆˆ ˆ ,, and ? Pcarn is also measured in \$/dozen; Dinc is weekly disposable income in dollars. 3. Compare the estimated values: l 1 and l 1 . How would you explain the observed difference? 4. Using your multiple regression results, formulate and complete hypothesis tests for the three population parameters, 3 and Multiple Regression in Minitab 1. You first need to open both Minitab and Word so that we can have the word processor available to organize your results. When you have opened Minitab , you should see two windows: one titled Session and one titled Worksheet . 2. Before we can do anything, we need data. Last week, we simply copied the data from Excel to the Minitab worksheet. We can also Import the data that are available in another format. For example, an ASCII (text) file, roses.dat is available on the course website. The file contains the same variables listed in the Excel spreadsheet. You need to have a physical copy of this data set available, eg., from the L: folder, your flash drive, or the desktop, etc. 3. To read the data into Minitab : Click on an empty cell in the Minitab worksheet. Choose F ile from the Minitab main menu, then Other F iles , and I mport Special Text . You will find yourself in a window that asks you to describe the data you are about to import. LAB COPY – DO NOT REMOVE!!!

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In the box labeled, S tore data in column(s), you need to list names for the variables Minitab will encounter when reading the data file. So, whenever importing data into Minitab , you need to know the format of the data your are importing. You can choose any names you wish
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Lab 8 Exercises - Multiple Regression in Excel and Minitab...

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