University:
Eastern Kentucky University
Course:
STA 270 | Applied Statistics
Academic year:

2022
Views:

436

Pages:

4
Author:

Kolten Khan

Housing Price Prediction Model for D.M. Pan Real Estate Company Median Housing Price Prediction Model for D.M. Pan National Real Estate Company Module Two Notes Regression Equation Housing Price Prediction Module 700,000 600,000 f(x) = 90.24 x + 170239.78 R² = 0.65 500,000 400,000 300,000 200,000 100,000 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Y: response variable (dependent variable) median listing price X: predictor variable (independent variable) median square feet Median square feet (x) variable is used to predict the median listing price. The scatterplot above shows the association between the x and y variables. Thus y=90.244x + 170240 2 Median Housing Price Prediction Model for D.M. Pan National Real Estate Company 4 correlation coefficient. A positive correlation indicates that with the increase in variable “x,” the variable “y” also increases, and reverse with a negative correlation. The zero correlation tells us that there is no relationship between the x and y variables. The strength of the relationship can be predicted by using the information below: Table 3.3.1: Strength of correlation. Value of |R| Strength of correlation 0<|R|≤0.40 Weak 0.40<|R|≤0.80 Moderate 0.80<|R|≤1.00 Strong Since the value of r =0.806597793 it illustrates that the relationship between the median square feet of houses in the Mid-Atlantic Region, and the median listing price in that area is very strong. The slope tells us that with every 100 increase in median square feet of the house the listing price increased by $9000. The scatterplot is the best-suited graph to use here. On the X-axis we represent the median square feet of the houses, and on the Y-axis, it is representative of the median listing price of the houses in the Mid-Atlantic Region. Median Housing Price Prediction Model for D.M. Pan National Real Estate Company 5 Housing Price Prediction Module 700,000 600,000 f(x) = 90.24 x + 170239.78 R² = 0.65 500,000 400,000 300,000 200,000 100,000 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 The square footage for homes in the Mid-Atlantic region are pretty similar to the homes overall in the United States. Summary Statistics Listing n 1,000 price ($) Cost per 1,000 Mean Median Std. Dev. Min Q1 Q3 Max 342,365 318,000 125,914 135,300 265,250 381,600 987,600 169 166 41 71 139 191 344 2,111 1,881 921 1,101 1,626 2,215 6,516 square foot ($) Square 1,000 feet This graph shows the frequency for listing price.