**Download **the dataset. The data set is information about the tax assessment value assigned to medical office buildings in a city. The following is a list of the variables in the database:

- Floor Area: square feet of floor space
- Offices: number of offices in the building
- Entrances: number of customer entrances
- Age: age of the building (years)
- Assessed Value: tax assessment value (thousands of dollars)

As you work through the following exercises, **note **your answers to the given questions so you can easily summarize them in your reflection.

**Use **the data set to construct a model that predicts the tax assessment value assigned to medical office buildings with specific characteristics.

1. Construct a scatter plot in Excel with Floor Area as the independent variable and Assessment Value as the dependent variable. Insert the bivariate linear regression equation and R2 in your graph.

- Do you observe a linear relationship between the 2 variables?

2. Use Excels Analysis ToolPak to conduct a regression analysis of Floor Area and Assessment Value.

- Is Floor Area a significant predictor of Assessment Value?

3. Construct a scatter plot in Excel with Age as the independent variable and Assessment Value as the dependent variable. Insert the bivariate linear regression equation and R2 in your graph.

- Do you observe a linear relationship between the 2 variables?

4. Use Excels Analysis ToolPak to conduct a regression analysis of Age and Assessment Value.

- Is Age a significant predictor of Assessment Value?

Construct a multiple regression model.

- Use Excels Analysis ToolPak to conduct a regression analysis with Assessment Value as the dependent variable and Floor Area, Offices, Entrances, and Age as independent variables.
- What is the overall fit R2? What is the adjusted R2?
- Which predictors are considered significant if we work with =0.05? Which predictors can be eliminated?
- What is the final model if we only use Floor Area and Offices as predictors?
- Suppose our final model is: Assessed Value = 115.9 + 0.26 x Floor Area + 78.34 x Offices.
- What would be the assessed value of a medical office building with a floor area of 3500 sq. ft., 2 offices, that was built 15 years ago?
- Is this assessed value consistent with what appears in the database?

**Reflection**

In a minimum of 500 words, **reflect **on the types of medical offices you would advise management to close and open, and why. Use your exercise notes to support your rationale.