Question

Homes For Sale

Data were collected from a random sample of 120 homes for sale in the United States. The variables in the data set include the following:

• Price: asking price (in thousands of dollars)
• Size: livable area (in thousands of square feet)
• Beds: number of bedrooms
• Bath: number of bathrooms

<Research Questions>

• 1. Is there a relationship between the size of a house and asking price?

  2. Can the asking price of a house be predicted using the size, number of bedrooms, and number of bathrooms?

• <Questions for final project proposal>

• 1) For your first research question, what descriptive statistics and graphs will you produce?

• 2) For your second research question, what inferential statistics will you use?

3) For your second research question, what descriptive statistics and graphs will you produce?

The analyses we discussed in this class that may be appropriate for your data are:

• One-sample mean z test
• One-sample mean t test
• Paired samples t test
• Independent samples t test
• One-way between groups ANOVA
• One-way within groups ANOVA
• Correlation
• Linear Regression

Answer 1

Answer 1:

For determining the relationship between size of house and asking price we can calculate correlation coefficient. Also, we can use scatter plot to depict the relationship between these two variables.

Answer 2:

For predicting  the asking price of a house using the size, number of bedrooms, and number of bathrooms, linear regression analysis can be used. The regression analysis will help in deriving regression equation for forecasting asking price.

Answer 3:

The descriptive statistics needed will be mean and standard deviation of all variables. Also, we can calculate Multiple R, R square, Adj. R square and standard error of estimate. Also, we can plot the regression line equation.