Regression Analysis

Assignment Requirements

Estimate relationship between dependent variable (Y) and independent variables (X). Assume the Y variable is L.A taxi cab company�s profit(Like �Los Angeles Taxi Cab�;�LA Yellow Taxi Cab Company�). Find out the X variables(more than five variables), and specify the variables in your statistical models (Example of log model
? = b0+b1X1+b2X2+ b3X3+b4X4) and analyze the regression equations. Briefly outline the data sources used in the construction of your dependent and independent variables. Discuss your empirical results(most important!!). Restate some of the main empirical findings of the paper. Maybe you can rephrase the most important findings using big picture language. This would be a good place to summarize the point of the paper.
Notes: (1). Include all the variables in your regression models that you think have an effect on your dependent variable. Don�t drop variables just because they are statistically insignificant. (2) Do not ignore the empirical results and simply discuss what makes sense. If a result is counter-intuitive, acknowledge it in your discussion. (3) Do not confuse X with Y in discussing your empirical results. Your purpose in interpreting results is to explain the variation in Y. The reason for the variation in Y is the variation in X. (4). For example, suppose you have the regression model and b1=.05, b2=2.5. This doesn�t necessarily mean that X2 has a larger impact on the dependent variable than X1 has. You have to look at the units of X1 and X2. (5) Do not analyze above your head. For example, if you are shaky on using p-values to perform hypothesis tests, don�t use them; use the t-statistic! (6) Don�t interpret a negative coefficient as meaning the relationship between the respective X and Y is weak.

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