Statistical analysis of Multiple regression
Introduction
The number of empirical work studying house prices and their links to the other factors are persistently on the rise. Housing market research has been topical since its role in the recent global economic crisis, specifically referring to the recent boom in house prices in many developed countries following a sharp bust in 2008. Researches and policy makers alike have realized that housing has significant influences on the business cycle. This paper tries to figure out the determinants of the selling price of houses in Oregon. The data set used in this paper has been retrieved from the case study titled “Housing Price” (Case #27 - Practical Data Analysis: Case Studies in Business Statistics- Marlene A. Smith & Peter G. Bryant)
The most important factor in determining the selling prices ofhouses is to know the features that drive the selling prices of the house. People tend to have more interest in houses with multiple bed rooms/bathrooms, fireplace, garage for multiple cars and location while choosing a house. So, a house that meets this requirement tends to be priced more and the house with these features being absent is priced low. According to the survey conducted by Marlene A. Smith & Peter G. Bryant while forming their case study titled “Housing Price” (Case #27 - Practical Data Analysis: Case Studies in Business Statistics), 10 variables were selected to find out their impact in determining the housing price. A sample of 108 houses wasselected from East Ville, Oregon along with their characteristics on 10 selected selected variables. The variable set for the study is:
Selling Price of House
Area
No of Bed rooms
No of Bath rooms
Heating Method
The architectural style of the home
Maximum number of cars that can fit in the garage
Availability of basement facility
Age of the house in years
Availability of Fire place facility
Nearby School
Objective of the Study
The objective of the proposed study is to find out the
The number of empirical work studying house prices and their links to the other factors are persistently on the rise. Housing market research has been topical since its role in the recent global economic crisis, specifically referring to the recent boom in house prices in many developed countries following a sharp bust in 2008. Researches and policy makers alike have realized that housing has significant influences on the business cycle. This paper tries to figure out the determinants of the selling price of houses in Oregon. The data set used in this paper has been retrieved from the case study titled “Housing Price” (Case #27 - Practical Data Analysis: Case Studies in Business Statistics- Marlene A. Smith & Peter G. Bryant)
The most important factor in determining the selling prices ofhouses is to know the features that drive the selling prices of the house. People tend to have more interest in houses with multiple bed rooms/bathrooms, fireplace, garage for multiple cars and location while choosing a house. So, a house that meets this requirement tends to be priced more and the house with these features being absent is priced low. According to the survey conducted by Marlene A. Smith & Peter G. Bryant while forming their case study titled “Housing Price” (Case #27 - Practical Data Analysis: Case Studies in Business Statistics), 10 variables were selected to find out their impact in determining the housing price. A sample of 108 houses wasselected from East Ville, Oregon along with their characteristics on 10 selected selected variables. The variable set for the study is:
Selling Price of House
Area
No of Bed rooms
No of Bath rooms
Heating Method
The architectural style of the home
Maximum number of cars that can fit in the garage
Availability of basement facility
Age of the house in years
Availability of Fire place facility
Nearby School
Objective of the Study
The objective of the proposed study is to find out the