Part 1 - Model and Data Collection
1. Dependent Variable (1 + 1 = 2 Points)
a. Choose and define a variable that you have an interest in predicting/estimating (Y)
b. State what is your interest in this variable
2. Quantitative Independent Variables (2 + 2 = 4 Points)
a. Identify and define at least two quantitative parameters (X1, X2, and ...) that you believe to be relevant in explaining the variations in Y
b. State your logic/reasons for believing why each X; is relevant in predicting the values of Y
3. Qualitative Independent Variable (1 + 1 + 1 + 2 = 5 Points)
a. Identify and define at least one Qualitative parameter that you believe to be relevant in explaining the variations in Y.
b. State your logic/reasons for believing why each qualitative variable is relevant in predicting the values of Y.
c. For your chosen Qualitative parameters, state the different "conditions".
d. Clearly define and state the values for each of the Dummy Variables for your Qualitative parameter.
4. State your proposed Multilinear Regression Model for Y in the general form. State the equation for in the general form. Keep in mind that you can introduce quadratic Independent Variables in your model (1 + 1 = 2 Points)
5. Collect at least 25 sets of observations (Y and Xs) for your model and report it in a table format that includes the values for the Dummy Variables and the column stating the qualitative conditions. The required data needs to be from a reliable source (10 Points)
6. Identify at least one other possible variable (quantitative or qualitative that you may consider including in your model later and state your reason for its possible relevance (1 + 1 = 2 Points)