Selling Price and Area Analysis for D.M. Pan National Real Estate Company

Selling Price and Area Analysis for D.M. Pan National Real Estate Company Report: Selling Price and Area Analysis for D.M. Pan National Real Estate Company 1 Selling Price Analysis for D.M. Pan National Real Estate Company 2 Introduction This report will examine the relationship between square footage of homes and their respective listing price. For the purpose of this report, we will select a random sample of the East North Central Region of the United States to analyze. This region can include all counties in the following states: Michigan, Ohio, Illinois, Wisconsin, and Indiana. Representative Data Sample This random sample was taken from the East North Central Region of the United States. Sample 1 Sample 2 Sample 3 Sample 4 Sample 5 Sample 6 Sample 7 Sample 8 Sample 9 Sample 10 Sample 11 Sample 12 Sample 13 Sample 14 Sample 15 Sample 16 Sample 17 Sample 18 Sample 19 Sample 20 Sample 21 Sample 22 Sample 23 Sample 24 Sample 25 Sample 26 Sample 27 Sample 28 Median Square Feet 1434 1446 1449 2472 1563 1767 1591 1726 1844 1090 2094 1494 1327 1818 1832 1552 1667 2173 1811 1606 1482 3099 2117 1736 2413 1822 2712 1709 Median Listing Price $102,450 $99,970 $110,053 $495,568 $114,255 $156,788 $128,071 $220,956 $210,494 $169,160 $325,794 $94,494 $129,273 $224,277 $252,807 $124,954 $137,148 $279,481 $127,413 $94,994 $127,516 $440,864 $198,174 $229,174 $253,514 $277,720 $280,054 $105,965 Mean Median St. Deviation Median Square Median Feet Listing Price 1804 $195,222 1723 $162,974 427.116 $100,552.32 10.02.2025, 16:34 SNHU MAT 240 Module 2 Assignment Selling Price Analysis for D.M. Pan National Real Estate Company Sample 29 Sample 30 1720 1546 3 $226,137 $119,143 Data Analysis This sample is not very representative of the national market. When looking at the national market, the median listing price is $288,407 and for the above sample, the average median listing price is $195,222, meaning that houses in this area are listed for significantly less than the national market. Further, the average square footage in the random sample came in at 1,804, while the average national square footage of listed homes was 1,944, therefore it can be inferred that the average house on the market in this random sample tend to be smaller in size and less expensive than the national averages. The standard deviation of the measured homes also vary widely between the sample and the national average, with the sample having a standard deviation of 427.116 for square footage and $100,552.32 for listing price, while the national standard deviation for square footage is 367 and the listing price is $163,986. Given this comparison of information, the same is not reflective of the national market. In order to ensure that a completely random sample of one region was taken, opportunity for human biases and error were removed. This was achieved by assigning each county in the region a random computer-generated value. From there, the data from each county was sorted from smallest to largest by the random value assigned to it. Once sorted by the random value, the first 30 counties were used as the random sample. This method of choosing 30 random counties ensures that there is no unknown biases that may be present when choosing, thus relying on the computer to generate a completely random sample. Scatterplot Selling Price Analysis for D.M. Pan National Real Estate Company 4 Median Listing Price $600,000 $500,000 f(x) = 190.68 x − 148726.9 $400,000 $300,000 $200,000 $100,000 $0 500 1000 1500 2000 2500 3000 3500 The Pattern The independent variable (X) in the scatterplot above is the median square feet of the sample homes. The dependent variable (Y) is the median listing price. Given that the independent variable (also known as the predictor variable) is the median square feet of the sampled homes, that is the variable that would be useful for making predictions, as it is the variable that predicts the value of Y. The association between X and Y that can be seen on the above scatterplot is that as the median square footage of homes rise, so does the median listing price of the homes. Therefore there is a positive relationship between the two variables. The relationship can also be described as linear, which is demonstrated on the scatterplot with the trend line. The regression equation of the scatterplot is y=190.68x-148,727. Given this information, if a 1,200 square foot home were to be listed on the market, the price should be set at $80,089 ($80,089=190.68(1,200)-148,727). There are a few outliers on the scatterplot, the largest one Selling Price Analysis for D.M. Pan National Real Estate Company 5 being the home listed at $495,568 but is only 2,472 square feet large. Given the equation, the home should have been listed at $322,633. The cause of this could be that the home could have upgrades that are not usual, such as a recent complete remodel, a very large yard with a pool, etc. These outliers represent numbers that fall a certain amount outside the normal variance of the other values.