Assignment 1
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University of Michigan, Dearborn *
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Course
DS 633
Subject
Economics
Date
Feb 20, 2024
Type
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7
Uploaded by monikagautam93
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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Related Questions
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