You are required to choose a topic for your project. The purpose of this project is to use multiple regression analysis to build an explanatory equation for the dependent variable of your interest. The sample of your data must include at least 30 observations (it would be preferable to analyse larger samples). Write a report, containing answers to the following questions:
(1) Comment on the expected relationships between your dependent and explanatory variables.
(2) Perform and interpret a multiple regression.
(3) Apply the methodology of hypothesis testing to investigate if your empirical findings are consistent with the theoretical expectations. Comment on your findings.
(4) Apply relevant diagnostic tests to check for model specification error, multicollinearity, heteroscedasticity and autocorrelation. Comment on what could you do to improve the performance of the multiple regression. If possible, take appropriate course of action to address the issue.
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