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Multiple Regression Model for a Real Estsate Broker

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You are a real estate broker who wants to compare property values in Glen Cove and Roslyn. Make sure to include dummy variable for location in the regression model
a. Develop the most appropriate multiple regression model to predict appraised value.
b. What conclusions can you reach concerning the differences in appraised valued between Glen Cove and Roslyn?

* Data set attached

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Solution Summary

The solution provides a step-by-step method for the calculation of regression analysis. The formula for the calculation and interpretations of the results are also included.

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a. Develop the most appropriate multiple regression model to predict appraised value.
The most appropriate regression model is given by,
Appraised value = 23.3975 + 347.0222 * Property Size + 0.1061 * House Size - 0.7921 * Age + 26.3834 * Baths + 57.7386 * Glen Cove + 213.4575 * Roslyn
(see attachment for table)

The regression coefficients can be interpreted as follows:
For a unit increase in Property Size, the Appraised value increases by 347.0222 ...

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