A real estate company have hired you to carry out a multiple regression analysis that examines the determinants of house prices. Using data from the Supplemental Assignment 1 data file, which is available on Canvas, you are required to complete a report which includes the following points:

a) Identify the variables that may impact on house prices. These variables are to be used as independent variables in your regression analysis. Provide a rationale as to why you think these variables may impact on house prices. Use existing literature to support your claims.

b) Write out the regression line that you will estimate and clearly define each of your variables.

c) Estimate the model in Excel.

d) Present the results of the model in a professional format. Interpret the results.

Answer all parts. Data are posted on Canvas.

Microsoft Excel is to be used for regression analysis. The assignment is to be presented in a Microsoft Word document.

Assignments should be presented in a report format i.e. have an introduction, main body and conclusions, followed by references and appendices (appendices are optional).
This is an individual assignment. High marks are awarded for excellent (i) understanding of regression analysis in terms of executing the correct techniques and interpretation of regression outputs (ii) use of relevant literature to support claims that are being made and (iii) professional presentation (including writing style, layout, citation/referencing).

Assignments are to be word processed (double spaced with 12cpi) and to include a word count. The maximum word count is 1500 words (excluding the reference list and appendices) – a penalty of 1% per 100 words over this limit will be applied. All assignments should include a cover page as per checklist attached. Any literature or data used must be cited and referenced correctly. See the style guide posted on Canvas for correct citation and referencing.