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MAT 240 Project One - Jessica Lindgren.docx - Median...

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Median Housing Price Prediction Model for D. M. Pan National Real Estate Company1Report: Housing Price Prediction Model for D. M. Pan National Real Estate CompanyJessica LindgrenSouthern New Hampshire University
Median Housing Price Model for D. M. Pan National Real Estate Company2IntroductionI was asked to develop a model to predict housing prices for homes sold in 2019. Thisinformation will be used to help real estate agents to better determine the use of square footageas a benchmark for listing prices on homes. I will use a scatterplot and linear regression line toassist in predicting the listing price based on the home. The scatterplot should have most of themarks along the regression line, and we should be able to see a positive correlation, or as the sqft increases the listing price should increase. “In a linear regression involving two variables, theresponse variable is the variable being modeled or predicted, while the predictor variable is thevariable used to predict the response.” (zybooks.com) I will create a scatterplot using the Sq Ft ofthe home to predict the listing price because the sq ft is the predictor variable and the listing priceis the response variable. If the scatterplot is accurate theData CollectionI was able to provide my sample set by using the random function in excel and then Icopied and pasted the random numbers as a number to get rid of the formula and sorted smallestto largest. I then selected the first 50 data sets and deleted the rest of the information. I used these50 data sets to do my remaining calculations and to create the scatterplot and histograms below.When creating the scatterplot, I made the y axis the listing price and the x axis is the sq ft. Withthis scatterplot we can use the sq ft variable to find an approximate listing price because the sq ftof the home is the predictor variable.
Median Housing Price Model for D. M. Pan National Real Estate Company3Data Analysis
Median Housing Price Model for D. M. Pan National Real Estate Company4SampleMedian Sq FtMedian Listing PriceMean2,136$337,388Median1,876$326,950Stand Dev1,022$122,019NationalMedian Sq FtMedian Listing PriceMean2,111$342,365Median1,881$318,000Stand Dev921$125,914The graphs and statistics I pulled are indicative of the sq ft of a home being a goodpredictor of what the listing price should be. The scatterplot shows a positive trend with most ofthe marks clustered together. The histograms also show that the frequencies of the sq ft and

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Term
Spring
Professor
camara
Tags
Econometrics, Linear Regression, Regression Analysis, Errors and residuals in statistics, D M Pan National Real Estate Company

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