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 question

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

1. what descriptive statistics and graphs will you produce?
2. what inferential statistics will you use?

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

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

Yes, the asking price of a house can be predicted from its size, number of bedrooms and bathrooms.

The descriptive statistics that we would produce are

correlation between price and size

correlation between price and bed

correlation between price and bath

And the scatterplots of these pairs

The inferential statistics are used when we test for the hypothesis that the slopes of regression, for all the three explanatory variables.

We are predicting one dependent variable from three explanatory ones.

So, the analysis that we would have to use here, is

LINEAR REGRESSION