The technical analysis you undertook has raised some new questions, and the client would like to better understand the relationships in this dataset and has asked you to complete a regression analysis. Include this as a new section (Section 3) in your report (800 words). This section should be technical in nature, however non-technical conclusions should be provided.

1. Provide a brief background of the situation you are going to look at. Specifically, why did you choose the dependent variable you chose? (hint: ensure you use a numeric dependant variable that the other available variables will help explain)
2. Indicate the general model that you are going to estimate. At least one of the independent variables must be a dummy variable.
3. Discuss what you think the relationship is between the dependent variable and the independent variables, and what that leads you to conclude about the expected signs of the coefficients in the model. Do this before estimating any models. Calculate the correlation between each of the independent variables and the dependent variable. Do any of the correlations disagree with your expected relationships? If so, make a note of this.
4. Estimate and present the estimated model.  Give an interpretation of the coefficient of determination (R2). List the adjusted R2. Use the F-test to test the validity of the model as a whole at a 5% level of significance.
5. Give an interpretation of each of the estimated coefficients. Do the signs of the coefficients match your expectations? At the 5% level of significance, test whether each of the variables makes a significant contribution to the model.
6. Conduct an analysis to determine if any problems exist (check the relevant regression assumptions).
7. Show, with a single example, how you can use your model to make a prediction using a combination of values for your independent variables.
8. Summarize the results of your analysis discussing any key relationships you have exposed.

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