Master's Series

Concurrent Session

# M19 - Crushing the Real Estate Market With Multiple Linear Regression

Monday, April 30
1:30 PM - 2:30 PM
Location: WSCC 611 - 612

Division: Six Sigma Forum

Multiple linear regression is a powerful tool in both design, measure, analyze, improve, control (DMAIC) and Design for Six Sigma (DfSS) problem solving because there is small likelihood that only one input variable completely controls the output variable. While the practitioner's first choice should always be a designed experiment, sometimes constraints on data collection will not allow for a designed experiment to be executed. In situations like this, a multiple regression study can be very beneficial to determine the direction and strength of the relationships between the input variables and the output variables. Multiple regression can also be used for prediction and optimization, similar to a designed experiment. This session focuses on how to run a multiple regression study—from data collection to the analysis—and how to avoid common pitfalls. To illustrate the power of multiple linear regression, real estate data in southeast Michigan will be analyzed to generate a predictive model for list price based on characteristics of a property. Use your statistics knowledge to your advantage—know what price to pay and what price to command. Crush the real estate market with multiple linear regression.

## Learning Objectives:

• Determine when it is appropriate to run a multiple regression analysis.
• Know how to effectively collect data for a multiple regression analysis.
• Analyze and interpret the results of a multiple regression analysis.
• Avoid common multiple regression errors—multicollinearity, improper model reduction, and over-fit models.

# Scott C. Sterbenz

Professional Engineer, State of Michigan

Six Sigma Master Black Belt
Ford Motor Company
Brownstown Twp., Michigan

Scott Sterbenz is a Six Sigma Master Black Belt at Ford Motor Company in Dearborn, MI. In this role since 2001, he solves customer satisfaction and quality issues using the design, measure, analyze, improve, control (DMAIC) and Design for Six Sigma (DFSS) toolsets. Outside of Ford, he serves as a volunteer technical advisor for the United States Bowling Congress, the national governing body for the sport of bowling. There, he helps develop test plans and data analysis methods to set specifications for bowling lanes, pins, and balls—in addition to conducting ground-breaking research for the sport. A licensed Professional Engineer in the state of Michigan, Sterbenz is a three-time ASQ International Team Excellence Award finalist. He holds a bachelor's and master's degree in mechanical engineering from Wayne State University in Detroit—having graduated first in his class in both programs. In his spare time, Sterbenz enjoys mountain biking and motorcycling. He is also an accomplished bowler, with 12 certified 300 games and a high certified three-game series of 853.

# Govindarajan Ramu

SunPower Corporation

# Assets

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