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    Multiple Regression of Lumber Prices and Number of Housing

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    Using this sample problem, compute the multiple regression formula using the interest rates, lumber prices, and number of housing starts provided below. Once you have computed the multiple regression formula answer the following questions.

    Using this sample problem, compute the multiple regression formula using the interest rates, lumber prices, and number of housing starts provided below. Once you have computed your multiple regression formula answer the following questions.
    What is the regression formula that you computed? It should be of the form
    Y = a1*X1 + a2*X2 + b
    where
    Y = number of housing starts
    X1 = interest rates
    a1 = regression coefficient of interest rates
    X2 = lumber prices
    a2 = regression coefficient of lumber prices
    b = constant.
    What would the approximate number of housing starts be at the following interest rates and lumber prices:
    9.0% at $1.00 per board foot
    8.5% at $1.50 per board foot
    5.5% at $1.25 per board foot
    4.5% at $0.90 per board foot
    3.7% at $1.00 per board foot
    2.3% at $0.75 per board foot.
    Use Excel to assist you with the calculations. Input the above data in an Excel spreadsheet and input your multiple regression formula using the data cells as the variables. Excel can then automatically compute the results.
    If you were the owner of a business in the housing construction sector how would this information affect your decisions?
    Housing Starts in Relation to Interest Rates and Lumber Prices
    Interest Rate Price Per Board Foot Housing Starts
    11% $1.25 8,500
    11% $1.00 9,000
    11% $0.90 9,200
    11% $0.75 9,500
    10% $1.25 9,700
    10% $1.00 10,000
    10% $0.90 10,300
    9% $1.25 22,000
    9% $1.00 24,000
    8% $1.25 39,000
    8% $0.90 45,000
    8% $0.75 52,000
    Click HERE to compute the multiple regression formula. (Use the multiple regression equation to compute your formula. NOTE: Enter percentages as .08, .09, .10, etc.)

    © BrainMass Inc. brainmass.com June 3, 2020, 10:31 pm ad1c9bdddf
    https://brainmass.com/statistics/regression-analysis/multiple-regression-235101

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    This in-depth solution contains step-by-step instructions on conducting a multiple regression analysis on lumber prices and number of housing.

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