Assignment 1

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University of Michigan, Dearborn *

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DS 633

Subject

Economics

Date

Feb 20, 2024

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pdf

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7

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Assignment 1 1. Work through Example 1 of Chapter 4 (pp. 62-79) of the eBook: Housing Prices. Do not submit a solution to this problem though. The real estate company wants to develop a model to predict the selling price of a home based on the data collected. The resulting pricing model will be used to determine initial asking prices for homes in the company’s portfolio. Linear Equation Pred Price = 197.150171156985 + 59.208097328214 * : Baths + 0.0511232612829319 * :Square Feet + -3.79851039837821 * :Miles to Base + 5.00610916953334 * :Acres Response Price Whole Model Actual by Predicted Plot Effect Summary Source Logworth PValue Miles to Base 4.742 0.00002 Acres 2.931 0.00117 Baths 2.910 0.00123 Square Feet 1.534 0.02927
Residual by Predicted Plot Summary of Fit RSquare 0.801793 RSquare Adj 0.781972 Root Mean Square Error 61.91579 Mean of Response 391.1911 Observations (or Sum Wgts) 45 Analysis of Variance Source DF Sum of Squares Mean Square F Ratio Model 4 620305.34 155076 40.4523 Error 40 153342.58 3834 Prob > F C. Total 44 773647.92 <.0001* Parameter Estimates Term Estimate Std Error t Ratio Prob>|t| Lower 95% Upper 95% Intercept 197.15017 34.72253 5.68 <.0001* 126.97332 267.32702 Baths 59.208097 17.0208 3.48 0.0012* 24.807769 93.608426 Square Feet 0.0511233 0.022611 2.26 0.0293* 0.0054245 0.096822 Miles to Base -3.79851 0.780608 -4.87 <.0001* -5.376177 -2.220844 Acres 5.0061092 1.43194 3.50 0.0012* 2.112051 7.9001673 Effect Tests Source Nparm DF Sum of Squares F Ratio Prob > F Baths 1 1 46387.913 12.1005 0.0012* Square Feet 1 1 19597.284 5.1120 0.0293* Miles to Base 1 1 90774.517 23.6789 <.0001* Acres 1 1 46854.783 12.2222 0.0012*
Residual by Row Plot Baths Leverage Plot Square Feet Leverage Plot
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