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Linear Regression

Sales of single family residence increasing in Sin City. This is more pronounced in older communities with cheaper homes, although people are still willing to pay up to live in never communities. Attached spread sheet contains info about location, number of offers made on homes, sq ft of homes, whether home made of brick or not, # bathrooms, # bedrooms, and price. Communities 1 and 2 are older, Community 3 is new.

Use regression to estimate pricing structure in Sin City.

1. Is there an additional benefit for a brick house.
2. Is there an additional benefit to live in a new neighborhood.
3. Is there additional benefit for brick house in new neighborhood, on top of additional benefit to live in brick house
4. Based upon estimation and prediction models, could communities 1 and 2 be collapsed into one older neighborhood.

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Sales single family residence increasing in Sin City. This is more pronounced in older communities with cheaper homes, although people are still willing to pay up to live in never communities. Attached spread sheet contains info about location, number of offers made on homes, sq ft of homes, whether home made of brick or not, # bathrooms, # bedrooms, and price.

Communities 1 and 2 are older, Community 3 is new.

Use regression to estimate pricing structure in Sin City.

For each of these questions, I made a scatterplot in Excel. Then, I added a trendline (Chart menu at top of the page) and made sure that the equation and r-squared values were displayed. A value of r-squared close to -1 or 1 indicates that there is a strong linear relationship between the variables. A value of r-squared close to ...

Solution Summary

The expert uses regression to estimate pricing structures. Single pricing residence in Sin City are determined.

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