Median Housing Price Prediction Model for D.M. Pan National Real Estate Company
2
Module Two Notes
MAT 240 Real Estate Data Project.xlsx
Regression Equation
Y=128.75x+188,688
Determine
r
R=0.843 this is the correlation between the Listing price using the Square footage as the
explanatory variable.
This is a STRONG correlation based on the formula below R is more than 80 but less
than one.
The correlation is positive as Square footage increases so does the listing price for the
pacific region.
Examine the Slope and Intercepts
Using the above formula the cost of land would be: $188,688 with 0 or no house.
Because this y intercept is positive I believe in context it does make sense because you can
assume that you will need to purchase land to build a house and it will cost something.
R
-squared Coefficient
The r squared: 0.710 or 71% indicates that 71 % of the median listing prices can be
explained by the amount of square footage of the home.
Conclusions
