Thr commercial facility construction projects.

Case 1:

A contracting firm collected data on its previously completed commercial facility construction projects.

The data is provided in the table below with the following column titles:

Cost = Actual direct cost in $100,000

SqFt = Square footage of the facility in 1,000 square feet

LinFtInt = Linear footage of interior walls in 100 linear feet

SqFtExt = Square footage of exterior walls in 1,000 square feet

1) Generate three parametric models using simple linear regression for estimating the direct cost ofcommercial facility construction projects performed by this firm based on:

a. Model 1: Square footage of the facility

b. Model 2: Linear footage of interior walls

c. Model 3: Square footage of exterior walls

2) Generate the parametric model (Model 4) using multiple linear regression for estimating the costof commercial facility construction projects performed by this firm using all three parameters givenabove. Provide any plots you deem appropriate.

3) Using these four models, estimate the cost of the following two potential projects:

A: SqFt = 30

LinFtInt = 5

SqFtExt = 14

B: SqFt = 45

LinFtInt = 12

SqFtExt = 25

Comment briefly on the above estimates. Indicate any problem(s) with the above estimates.

4) Specify the best parametric model for estimating the direct cost of commercial facility constructionprojects performed by this firm. You may select one of the above models or propose a new model.


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