Spring 2012
STAT 512
HW 5
1
Homework 5 (25.5 pts.)
due Feb. 24
A reminder – Please do not hand in any unlabeled or unedited SAS output. Include in your writeup only
those results that are necessary to present a complete solution (what you want the grader to grade). In
particular, questions must be answered in order (including graphs), and all graphs must be fully labeled
(main title should include the question number, and all axes should be labeled). Don’t forget to put all
necessary information (see course policies) on the first page. Include the SAS input for all questions at
the very end of your homework; this could be important even though it won’t be graded. You will often
be asked to continue problems on successive homework assignments so save all your SAS code.
The following problems are a continuation of Problem 3 in HW 4. Consider the data set from Problem
6.18, p. 251 about “Commercial Properties” (CH06PR18.DAT) which describes a data set (n = 81) used
to evaluate the relation because rental rates (Y) and the age of the unit (X
1
), operating expenses and
taxes (X
2
), vacancy rates (X
3
), total square footage (X
4
).
1. (12 pts.) This problem relates to material described in Chapter 6 about multiple regression.
(a) Run the multiple linear regression with age, operating expenses, vacancy rates and total
square footage as the explanatory variables and rental rate as the response variable.
From the data from the last problem set, finish the summary of the regression results by
giving the values of R
2
and the adjusted R
2
.
(b) Interactively generate a scatter plot for the response variable with the four explanatory
variables. From this information, do you think that a linear model is appropriate? Do you
think that there are any correlations between the explanatory variables?
(c) Is the response variable correlated with any of the explanatory variables? From this
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 Spring '08
 Staff
 Regression Analysis, explanatory variables, rental rate, operating expenses, square footage, vacancy rate

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