Microsoft Office Tutorials and References
In Depth Information
Multi-Regression
FIGURE 14.8 Final Regression Example Output
You want to use the model and utilize the coefficients of the output to forecast
prices. The values are shown here:
Intercept
129.1292
Apartment Size
0.4678
Bathrooms
66.9618
City
38.5433
Corner
20.6439
Balcony
11.3705
Let us take the first apartment we have on our list:
Price
656
Apartment Size
1423
Bathrooms
1
City
1
Corner
0
Balcony
1
This specific first apartment on the list was recently sold for \$656,000. We know
that it has 1,423 square feet, it has 1 Bathroom, it is located in the City, it is not a Corner
apartment (coded with 0), and it has a Balcony. Using the model coefficients figured
out by Excel to predict its selling price youwould have to calculate it the following way.
You will be using the coefficients multiplied by the values:
Price
¼
129
:
1292
þ
0
:
4678
×
1423
þ
66
:
9618
×
1
þ
38
:
5433
×
1
þ
20
:
6439
×
0
þ
11
:
3705
×
1
¼
;
:
:
\$653
411
80
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