Multiple Regression Analysis -

1. Write an overview of correlation and regression analysis (3-4 pages) with references

2. Construct a multiple regression model using data in "Census data by neighborhood")

The data set contains a large number of variables for 333 neighborhoods, from the 2011 census. Select 8 census variables as independents and treat "average house value" as the dependent, to construct a regression equation. (See the "Census variable definition" document) 

Suggested steps:

1) Select 8 variables as independents; explain in what way you believe they influence house value in a neighborhood

2) Perform a correlation analysis to check collinearity of the 8 chosen variables. If some of them a highly correlated, provide your explanations.

3) Use Stepwise Multiple Regression method to construct a regression model (i.e., generate a regression equation)

4) Interpret the model

5) Assess/verify the model

6) Use the model to predict the average house value for the neighborhood assigned to you in the following table.

Attachment:- Assignment.rar