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# How to apply regression analysis

A project paper: you will come up with a research question to investigate. You will apply regression analysis, a popular statistical method, to study the potential relationship between three variables. For example, how much does the increase in major greenhouse gases such as carbon dioxide and methane in the atmosphere affect Earthâ€™s temperature? How important are the inflation and unemployment rates in driving interest rate changes? How significant are the gender and age factors in determining the ratings of a TV show? How much do the state of the economy and advertising expenses affect retail sales?

In general, you should select a topic that is neither too technical nor too broad. It would be best to narrow your investigation to a specific (testable) relationship between a few variables. You will need to locate and document your data sources yourself. Data availability should be considered in selecting which research question to pursue. You can use any three data variables you want for your estimated relationship so long as you can justify their relevance for inclusion. There is no restriction on your choice of variables.

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After all, all you need is to identify three possibly related variables and gather their data for your project. You will have one dependent variable (Y) and two explanatory variables (X1 and X2) in your regression model: Y = Î²0 + Î²1X1 + Î²2X2 + Îµ. You will then estimate the model using Excelâ€™s regression tool and present the results in your paper.

Use publicly available data on the internet (at least 25 observations per variable). Use Excelâ€™s regression tool only. Do not use any other software program. Page Format: 1.5 spacing, 12 point font size, and one-inch margins. Page Limit: 4 to 8 pages long, excluding the title page, abstract, tables, and references.

II. ORGANIZATION OF THE PROJECT PAPER

The paper should have a title page with an abstract. Following that, the content of your paper should be presented and organized as follows:

1) Introduction (5 points)

Â· Identify the purpose of your paper and what research question to investigate.

Â· Provide some background information related to the topic of your investigation.

Â· Highlight why the investigation topic is relevant and interesting.

2) Data Description (5 points)

Â· Describe the sample data set and the type of data you have.

Â· Explain the data series (Y, X1, and X2) you use and define what they represent and

measure.

Â· Identify the data source or sources with a Web address for all the data series used in the

study.

3) Statistical Analysis and Results (10 points)

Â· Explain your data analysis, including the statistical approach (regression method) and the estimated model.

Â· Tabulate and report the results from your regression analysis, including any additional statistical tests you have conducted.

Â· Discuss and interpret all your statistical results and findings.

4) Conclusion (5 points)

Â· Restate the purpose of your study.

Â· Summarize the key results of your investigation.

Â· Describe the significance of your findings.

Â· Outline any limitations of your study

NOTESÂ :

1. Itâ€™s crucial to cite all sources you use to quote, paraphrase, and summarize to avoid plagiarism. For example, the APA citation style is widely used by students, researchers, and professionals in the social and behavioral sciences, natural sciences, business, engineering, and many other fields.

2. No graphs, diagrams, or pictures are needed.

3. You may include a third explanatory variable (X3) in your study if you can provide a reasonable justification for its inclusion.

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