The following data given the selling price, square footage, number of bedrooms and age of houses that have been sold in a neighborhood last year .You are asked to analyze these data, using the Data Analysis tool in Excel, and produce a summary report that will answer the following questions:
1. Consider the selling price, summarize its distribution and interpret the results?
2. Is there evidence that the average price is significantly different from 115,000 pounds?
3. When you consider the size of the property (area), is there significant difference between 4 and 3 bedroom houses?
4. Based on this sample, provide at 95% confidence interval for the area of 4 bedroom houses in this neighborhood.
5. Is there evidence of association between the selling price and the other variables?
6. Develop three regression models to predict the selling price based upon each of the other factors (variables) individually. Which of these is best? What are the limitations of your best model? How can you improve this analysis?
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This solution discusses the significance of the selling price of houses based on area, number of bedrooms and years. It shows step-by-step calculations to determine a 95% confidence interval, evidence of association, and also develops three regression models based on the other variables.