Applied Statistics - Regression Assignment
In this assignment you are expected to set up a regression equation, run that regression and interpret and evaluate the results. You will need to carefully state all null hypotheses, alternative hypotheses, checking against a correct critical value and carefully evaluate the results. This is a group assignment with 3-4 people in one group. Please upload your report to Canvas use pdf format. Make sure that your final file is readable, has clear graphs/tables, that no strange symbols appear in the file. Part of the grade will evaluate the set up and the clarity of the report (check that all tables are numbered have clear titles and are referred to in the text). The report should be no more than 10 pages (excluding the SPSS output tables which should be in appendix). Use SPSS do not use Excel. You are also expected to use at least two peer-reviewed scholarly journals in your report.
Using information from the attached dataset CARPRICE.xlsx set up a model that explains the price of new cars and is from 1995. In table 1 you can find definitions of variables in the dataset.
Table1: Variable definitions for the New Car Price Model
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Variable
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Description
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Salepricei
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Price paid for car_i in $1000 dollars
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Car specifications:
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hatchi
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A dummy variable = 1 car_i is a hatchback, 0 for sedan
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wbasei
|
Wheel base in inches
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lengthi
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Length of car_i in inches
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widthi
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Width of car_i in inches
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heighti
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Height of car_i in inches
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wighti
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Weight of car_i in inches
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cyli
|
Number of cylinders
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litersi
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Engine displacement in litres
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gasmpgi
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Estimated miles per gallon, average between city and freeway driving
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transi
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A dummy variable = 1 if car_i has an automatic transmission, 0 otherwise
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manuali
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A dummy variable = 1 if car_i has a manual transmission, 0 otherwise
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Your task is to set up a model that can explain the prices of new cars. While working on the report make sure you do the following.
1. Find at least two peer-reviewed articles that explain the price of vehicles and discuss them in your introduction. What influences their prices?
2. Set up the model; Discuss the variables you chose and explain why you chose them.
3. Choose a functional form for each of your variables and explain your choice.
4. Run the regression using the data set. Make sure the final regression equation will have the best estimates possible from this dataset using both arguments and references.
5. Interpret each coefficient of your equation. Are the signs the same as you expected?
6. Do a formal t-test on each of the coefficients and describe what they mean.
7. Discuss the quality of your equation. Are there variables missing? Do all the assumptions hold? How do you assess whether they hold or not? Do all the test necessary to answer this question.
8. What could be done to improve the quality of the equation?
9. Do your conclusions show different conclusions to the two peer-reviewed articles? Discuss.
10. Put all the SPSS output tables in an appendix to the report.
Attachment:- Assignment Files.rar