Correlation and regression analysis
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See attached data file.
1. Show variables data are useful, there will be a number of variables look at scatter plots, do an F test. This will tell if one of the variables has some predictive value or not.
2. What is the first order of term appropriate? What are independent variables interacting with other independent variables.
3. Reduce terms of the model. What variables that is not useful to the goal.
4. Test the model to make sure the four assumptions of ANOVA are satisfied. Use the Durbin statistics used to test independence of residuals
Create a model using the five step methodology. Examine and discuss the coefficients you obtained in your model, and the overall significance of your model. Begin with a summary of your findings and then step through your process. Skip step five
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Solution Summary
Step by step method for regression analysis is discussed here. Regression coefficients, coefficient of determination, scatter diagram and significance of regression model are explained in the solution.
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