Problem

We are currently undertaking the assignment and have come up against a brick wall. When trying to apply the regression to the data we find that it only works with ten of the X variables at a time. Any time we try to do a larger model it comes up with LINEST()function returned error. We went through the books chapter on completing models with excel and also the workshop notes but we couldn't overcome this hurdle. We tried creating other data and using old data and trying the same function but didn't really have the same problem. Is it possible to get some help with this?

During our last class you will recall that I spoke about dummy variables and the dummy variable trap. Dummy variables are used to capture qualitative attributes, in the case of your assignment the impact of the different suburban locations.

The reason you are having this specific problem is due to the "dummy variable trap".

To overcome this problem one of the suburb variables has to be excluded - I have suggested that South Yarra (X11) is perhaps a good one as this suburb contains the most expensive properties.

Simply delete the column containing variable (X11) and then run the regression with all variables.

Your ranges will be as follows:
Y - range: $A$1:$A$277
X - range: $B$1:$N$277
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