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Assignment Content
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Once your faculty marks this activity as complete in the gradebook, the
Competency Assessment will open for you to submit.
Competency 3 Statement
Utilizing statistical regression and time series analysis models, you
will be able to evaluate and analyze how multiple variables impact
an organization. You will also be able to create forecasts and
interpret data to analyze performance as it impacts strategic
planning and comparative advantage for an organization.
Manipulating data to create models helps us describe and
summarize relationships between variables. Understanding how
variables relate to each other helps businesses predict performance
and make informed strategic plans. For example, to make an
informed recommendation to management regarding which types of
office buildings to acquire or sell, you would model the relationship
between assessed value and given variables.
This reflection gives you an opportunity to develop, evaluate, and
apply bivariate and multivariate linear regression models, and then
reflect on office buildings you recommend acquiring and selling, and
why.
Pre-Reflection Exercise
Download the Competency 3 Reflection Data Set. The data set is
information about the tax assessment value assigned to medical
office buildings in a city. The following is a list of the variables in the
database:
o Floor Area: square feet of floor space
o Offices: number of offices in the building
o Entrances: number of customer entrances
o Age: age of the building (years)
o Assessed Value: tax assessment value (thousands of dollars)
As you work through the following exercises, note your answers to
the given questions so you can easily summarize them in your
reflection.
Use the data set to construct a model that predicts the tax
assessment value assigned to medical office buildings with specific
characteristics.
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1. Construct a scatter plot in Excel with Floor Area as the
independent variable and Assessment Value as the dependent
variable. Insert the bivariate linear regression equation and R2 in
your graph.
o Do you observe a linear relationship between the 2 variables?
2. Use Excels Analysis ToolPak to conduct a regression analysis of
Floor Area and Assessment Value.
o Is Floor Area a significant predictor of Assessment Value?
3. Construct a scatter plot in Excel with Age as the independent
variable and Assessment Value as the dependent variable. Insert
the bivariate linear regression equation and R2 in your graph.
o Do you observe a linear relationship between the 2 variables?
4. Use Excels Analysis ToolPak to conduct a regression analysis of
Age and Assessment Value.
o Is Age a significant predictor of Assessment Value?
Construct a multiple regression model.
o Use Excels Analysis ToolPak to conduct a regression analysis
with Assessment Value as the dependent variable and Floor
Area, Offices, Entrances, and Age as independent variables.
o What is the overall fit R2? What is the adjusted R2?
o Which predictors are considered significant if we work with
α=0.05? Which predictors can be eliminated?
o What is the final model if we only use Floor Area and Offices
as predictors?
o Suppose our final model is: Assessed Value = 115.9 + 0.26 x
Floor Area + 78.34 x Offices.
o What would be the assessed value of a medical office building
with a floor area of 3500 sq. ft., 2 offices, that was built 15
years ago?
o Is this assessed value consistent with what appears in the
database?
Reflection
In a minimum of 500 words, reflect on the types of medical offices
you would advise management to close and open, and why. Use
your exercise notes to support your rationale.
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DATCB/565 Competency 3 Reflection
Student Name
Institution
Course Name and Number
Instructor Name
Date
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Reflect on the types of medical offices you would advise management to close
and open and why
Medical office buildings play a critical role in healthcare accessibility, but their
financial viability depends on location, size, and revenue generation potential. According
to regression analysis, the floor area predicts evaluation ratings, but age has little effect.
This information may assist management in choosing medical offices to keep, grow, or
shut down. Choose buildings with greater floor areas and many offices to maximize
property value and operational efficiency.
The statistical analysis shows that floor area affects evaluation value with a p-value
of 1.23E-19, substantially below 0.05. This demonstrates that bigger medical offices have
higher appraised values because they can handle more patients, personnel, and specialist
equipment. Older buildings are not inherently worth less than newer ones since age does
not statistically affect value. This shows management should prioritize spatial capacity
over building age when making closure and acquisition choices.
Based on these insights, I recommend closing smaller medical office buildings
with limited floor space and few offices. Due to patient capacity and operational
inefficiency, these sites may struggle to produce enough money. Smaller structures may
struggle to incorporate new healthcare technology or accommodate growing medical
teams. These assets might be sold or repurposed to free up resources for better real estate
ventures.
While age does not significantly influence assessed value, older buildings with
high maintenance costs or structural issues should still be considered for closure.
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Regression study does not indicate a clear association between age and value, but obsolete
infrastructure, compliance concerns, and greater maintenance costs may render older
properties unsustainable. Thus, judgments on older structures should include statistical and
qualitative data.
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On the other hand, medical offices with larger floor areas and multiple offices
should be prioritized for acquisition or expansion. The capacity to serve more patients and
accommodate different healthcare professionals under one roof makes these structures
more profitable. A bigger facility may provide diagnostic imaging, physical therapy, and
expert consultations, which can improve patient numbers and income. Patient convenience
matters, too. Multi-entry offices may be more accessible for patients with mobility issues.
The regression model did not show entrances as a substantial predictor of value, although
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they affect patient experience. Management should look for facilities with easy access,
enough parking, and high-demand locations.
The data also imply that upgrading older buildings may not boost their value. Only
upgrades that improve operational efficiency or patient happiness should be done, as age
does not affect assessment value. To enhance a building's functional capability,
expenditures should emphasize space use, patient flow optimization, and technological
integration above aesthetics. Strategic planning should include long-term market trends.
Medical offices may need to switch from in-person visits to hybrid models as telemedicine
and outpatient treatment develop. Larger facilities that can accommodate physical
consultations and telemedicine infrastructure may give you an edge in the changing
healthcare industry. Better resource allocation and sustained development would result.
Management should also assess the financial viability of leasing vs buying
buildings. Leasing a big, well-located medical office may be cheaper than buying many
small facilities in high-demand metropolitan regions. Buying big estates outright may be a
better long-term investment in suburban or rural locations with lower land prices. Cost-
benefit analysis and statistical modeling would illuminate these financial choices. Finally,
regression analysis helps identify medical office buildings to shut or buy. Management
should acquire big, multi-office buildings to meet expanding patient needs because floor
space considerably affects appraised value, but age does not. Smaller, less efficient
buildings with high maintenance costs or limited growth potential should be closed or
repurposed. With this information, healthcare businesses may optimize their real estate
holdings, increase patient access, and boost financial sustainability.
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