Mathematics - Statistics 3-3 Assignment: Real Estate Analysis Part II
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RealEstateAnalysisP1.docxSelling Price Analysis for D.M. Pan National Real Estate Company 2
Report: Selling Price and Area Analysis for D.M. Pan National Real Estate Company
Doneisha Bishop
Selling Price and Area Analysis for D.M. Pan National Real Estate Company 1
Southern New Hampshire University
Introduction
Data helps many businesses to get an advantage in their industries’ competition. For example, in the real estate industry, linear regression is heavily used in the estimation of home prices. Professionals in real estate need to have sufficient knowledge on the relationship between build year, price, location, size, and other factors to provide better advice to their clients. This report examines relationship between the size of properties in square feet and their listing prices for D.M Pan National Real Estate Company.
Representative Data Sample
|
Region |
State |
County |
listing price |
$'s per square foot |
square feet |
|
East North Central |
oh |
stark |
201,000 |
$163 |
1,230 |
|
East North Central |
il |
macoupin |
197,600 |
$111 |
1,783 |
|
East North Central |
wi |
wood |
266,500 |
$144 |
1,853 |
|
East North Central |
oh |
richland |
248,900 |
$132 |
1,880 |
|
East North Central |
oh |
darke |
160,800 |
$114 |
1,416 |
|
East North Central |
il |
tazewell |
278,700 |
$165 |
1,693 |
|
East North Central |
oh |
wayne |
256,700 |
$129 |
1,986 |
|
East North Central |
oh |
muskingum |
188,300 |
$94 |
1,999 |
|
East North Central |
oh |
summit |
185,800 |
$101 |
1,847 |
|
East North Central |
oh |
mahoning |
207,500 |
$123 |
1,688 |
|
East North Central |
oh |
lucas |
228,300 |
$115 |
1,978 |
|
East North Central |
oh |
cuyahoga |
265,100 |
$136 |
1,947 |
|
East North Central |
oh |
lake |
225,900 |
$135 |
1,676 |
|
East North Central |
il |
adams |
266,100 |
$166 |
1,599 |
|
East North Central |
oh |
hancock |
380,300 |
$94 |
4,028 |
|
East North Central |
oh |
scioto |
204,200 |
$131 |
1,562 |
|
East North Central |
mi |
wayne |
213,800 |
$172 |
1,243 |
|
East North Central |
oh |
lorain |
226,200 |
$126 |
1,789 |
|
East North Central |
mi |
eaton |
189,900 |
$96 |
1,976 |
|
East North Central |
oh |
washington |
324,400 |
$156 |
2,081 |
|
East North Central |
in |
delaware |
221,600 |
$134 |
1,651 |
|
East North Central |
oh |
athens |
246,400 |
$158 |
1,560 |
|
East North Central |
oh |
trumbull |
243,000 |
$133 |
1,827 |
|
East North Central |
mi |
shiawassee |
192,400 |
$129 |
1,494 |
|
East North Central |
wi |
manitowoc |
181,400 |
$140 |
1,294 |
|
East North Central |
in |
madison |
229,100 |
$187 |
1,224 |
|
East North Central |
mi |
monroe |
228,600 |
$136 |
1,679 |
|
East North Central |
in |
st. joseph |
193,000 |
$111 |
1,736 |
|
East North Central |
oh |
knox |
192,200 |
$127 |
1,510 |
|
East North Central |
oh |
montgomery |
225,300 |
$151 |
1,493 |
|
Listing Price |
|
|
|
Sample |
|
Mean |
228,967 |
|
Median |
225,600 |
|
Standard deviation |
45232.74 |
|
|
|
|
|
|
|
Square Feet |
|
|
|
Sample |
|
Mean |
1,757 |
|
Median |
1,691 |
|
Standard deviation |
492.5962 |
Data Analysis
|
Listing Price |
||
|
|
Sample |
National |
|
Mean |
228,967 |
288407 |
|
Median |
225,600 |
256936 |
|
Standard deviation |
45232.74 |
163986 |
|
|
|
|
|
Square Feet |
||
|
|
Sample |
National |
|
Mean |
1,757 |
1944 |
|
Median |
1,691 |
1901 |
|
Standard deviation |
492.5962 |
367 |
The regional sample standard deviation, median, and mean for the listing price are lower than those from the national statistics. The regional sample median and mean square feet are lower than those of the national statistics. In contrast, its standard deviation for the sample square feet is great than that of from national statistics. Since the regional sample statistics are lower than the national market, the sample data does not compare to the population data.
I ensured I had selected a random sample by first filtering the data from the East North Central region. To ensure the randomness of the sample, I generated random values in a separate column using the RAND() functions. After generating the random values, I sorted the whole sample using the column containing random values and then selected a sample of size 30.
Scatterplot
The Pattern
Listing price is the dependent variable, while square feet is the predictor or independent variable. the variable responsible for making predictions is the square feet because it is the predictor variable.
The graph shows that there is no association between the listing price and square feet. The shape of the of association between the two variables is non-linear. The graph has an outlier at point (4,028, 380,300). The outlier occurred because there are few properties with a square feet of close to 4,028 hence having low chances of being selected in the random sample.
The regression equation for 1,800 square foot will be; listing price = 64.596*(1,800) + 115445 = 231717.8. A house of 1,800 square feet would be listed at a listing price of 231717.8.
ScatterPlot
listing price
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Square feet
listing price
