Question

1. Florida Sunshine Estate properties just signed contracts for two new listings: a Gulf View condominium with a list price of $589,000, and No Gulf View condominiums with a list price of $285,000. What is your estimate of the final selling price for each of these units?

   Gulf View Condominiums		No Gulf View Condominiums
   List Price	Sale Price	List Price	Sale Price
   495.0	475.0	227.0	227.0
   379.0	350.0	158.0	145.5
   529.0	519.0	196.5	189.0
   552.5	534.5	249.0	240.0
   334.9	334.9	289.0	277.5
   550.0	505.0	225.0	224.0
   169.9	165.0	289.0	269.0
   210.0	210.0	189.9	186.5
   975.0	945.0	159.9	154.9
   314.0	314.0	245.0	240.0
   315.0	305.0	209.8	202.0
   885.0	800.0	220.0	205.0
   975.0	975.0	236.0	222.0
   469.0	445.0	159.9	156.5
   329.0	305.0	170.0	170.0
   365.0	330.0	332.0	302.5
   332.0	312.0	197.5	189.0
   520.0	495.0	257.0	237.0
   425.0	405.0
   675.0	669.0
   409.0	400.0
   649.0	649.0
   319.0	305.0
   425.0	410.0
   359.0	340.0
   469.0	449.0
   895.0	875.0
   439.0	430.0
   435.0	400.0
   235.0	227.0
   638.0	618.0
   629.0	600.0
   329.0	309.0
   595.0	555.0
   339.0	315.0
   215.0	200.0
   395.0	375.0
   449.0	425.0
   499.0	465.0
   439.0	428.5

Answer 1

Gulf View condominium:

Regression Analysis: Sale Price versus List Price

The regression equation is
Sale Price = - 6.985 + 0.973 List Price

Predictor Coef SE Coef T P
Constant -6.985 6.158 -1.13 0.264
List Price 0.97300 0.01202 80.97 0.000

S = 14.8052 R-Sq = 99.4% R-Sq(adj) = 99.4%

Analysis of Variance

Source DF SS MS F P
Regression 1 1437131 1437131 6556.42 0.000
Residual Error 38 8329 219
Total 39 1445460

Unusual Observations

List
Obs Price Sale Price Fit SE Fit Residual St Resid
9 975 945.00 941.69 6.46 3.31 0.25 X
12 885 800.00 854.12 5.47 -54.12 -3.93R
13 975 975.00 941.69 6.46 33.31 2.50RX

R denotes an observation with a large standardized residual.
X denotes an observation whose X value gives it large leverage.

When Gulf View condominium with a list price of $589,000

estimated Sale Price = - 6.985 + 0.973*589000=$573090 ,

No Gulf View condominiums:

Regression Analysis: Sale Price versus List Price

The regression equation is
Sale Price = 15.099 + 0.88907 List Price

Predictor Coef SE Coef T P
Constant 15.099 6.670 2.26 0.038
List Price 0.88907 0.02927 30.37 0.000

S = 5.90782 R-Sq = 98.3% R-Sq(adj) = 98.2%

Analysis of Variance

Source DF SS MS F P
Regression 1 32192 32192 922.34 0.000
Residual Error 16 558 35
Total 17 32750

Unusual Observations

List
Obs Price Sale Price Fit SE Fit Residual St Resid
16 332 302.50 310.27 3.49 -7.77 -1.63 X

X denotes an observation whose X value gives it large leverage.

When No Gulf View condominiums with a list price of $285,000

the predicted Sale price=15.099 + 0.88907*285000=$253400