Question

Please solve multiple regression problem in Excel and please give me a posting that has never been posted. I am failing in this class due to the repost and not a new submission. Thank you. See discussion below:

A multiple regression model has more than one independent variable. Propose a business problem that would be best solved by multiple regression analysis. How would you evaluate the quality of the multiple regression model?

In all discussion question responses ensure that you correctly reference sources you used in researching and analyzing your response. Use appropriate scholarly citation methods.

Answer 1

Consider this data set-

Selling Price of the vehicle	Age	Miles
13532	8	61456
13740	9	54394
22979	2	8260
15276	5	24897
16423	2	22148
16627	7	23696
16907	1	47447
18405	1	16812
18811	7	35377
19850	5	29664
11883	9	55844
14918	2	46207
15925	1	36984
16485	2	45531
9431	9	86950
12947	8	77237
15742	8	59686
10538	8	93255
8913	9	48299
11954	9	42428

The Selling Price of a vehicle is a function of the age of the vehicle and the number of miles traveled

SP = f(Age, Miles)

Age and Miles are independent variables and Selling Price is the dependent variable

So, this is a case of Multiple Regression

How to solve it in Excel?

Enter the data as given above

Then go to Data -> Data Analysis -> Regression

For Y: Select the range for Selling Price

For X: Select range of both Age and Miles

The regression output is as follows-

Regression Equation is:

SP = 21149 - 359*Age -0.088*Miles

How to evaluate the quality of the regression output?

We can observe the values of R-Square and p-values of coefficients (Should be smaller than 0.05 for 95% CI)

Here it is 0.64 which means 64% of variation in price due to Age and Miles is explained by the SP

Let me know if you need anything else, if not please don't forget to like the answer :)