Finding The Price Of A Home Using Regression

3194 words - 13 pages

James HollidayGM53312/13/2008Executive SummaryThe analysis in this paper was utilized to find an equation that predicts the selling price of a house. The null hypothesis states that there is no clear and definitive relationship between the selling price of a house and the characteristics of the house. The alternate hypothesis states that there is definitely a relationship between the selling price of a house and the characteristics. A 95% confidence level and a confidence interval estimate of a predicted value of the selling price were used. The MegaStat output of a Regression Analysis of the data was used as the foundation to calculate the multiple regression equation. The point prediction of the selling price of a house corresponding to the variations of values of the independent variables is: Y = -12.5988 + 0.0383(X1) + 4.3573(X2) -14.5371(X3) + 16.0610(X4) + 11.3576(X5) - 1.2168(X6) which is given on the MegaStat output later in this paper. The MegaStat output shows that there is very strong evidence that these variables are definitely related to the selling price and indeed very important in this model. The results from the data show that the alternate hypothesis should be accepted.Introduction and PurposeThe purpose of this analysis is to find the equation that predicts the selling price of a house. While the focus of this paper is predicting the selling price of a house in Eastville, Oregon, the method discussed in this paper would also be easily utilized for data from other areas or countries. One major problem in measuring housing price growth results from the inconsistencies of transactions. To be meaningful, price data should be based on transaction prices rather than valuations.One of the most important things you need to know when selling a house is the maximum you should pay for a property so that you can ensure making a good profit. The key to determining your maximum cash offer is to know how to predict the value without relying on Realtors or any other third parties. There are many different house price resources that can be obtained to get the latest information on property prices and the patterns and trends of growth of the housing market, but this also makes it almost impossible to know which one you can trust to be accurate. To further enhance this information, the type of property and any adjustments needed should be included and at this time the information is not obtainable because that kind of an index does not exist. When it comes to the effects of short term house price inflation, property price volatility, and the recent housing market and mortgage crisis, the house price index is a very complex and extensive equation. There are many problems with predicting house prices due to the nature of the market where no sale is the same and a house that is identical to another can sell for a different price for any number of reasons including location, whether extra work had been done on the property, or due to the negotiations...

Find Another Essay On Finding the price of a home using regression


550 words - 2 pages The Price of Luck People often associate luck with an object. In D. H. Lawrence's short story "The Rocking-Horse Winner" the object is a childhood toy. Paul uses his rocking-horse as a symbol of his luck.In the beginning of the story the writer describes Paul's family and the situation they are in by saying, "Although they lived in style, they felt always an anxiety in the house. There was never enough money." His mother's explanation for being

The Price of Beauty Essay

1164 words - 5 pages diet for a six-year-old consists of two kilos of pounded millet, mixed with two cups of butter, asa well as twenty liters of camels milk. Matrons use sticks to roll on the girls thighs to break down tissues and to speed up the process. Other practices include subtle forms of torture, using 2 sticks inserted each side of a toe, when the child refuses to eat or drink the matron squeezes the sticks together, casuing great pain. By the age of 15 she

The Price of Success

1629 words - 7 pages also shown to bring fame and even some fortune to users who have taken them. For example, Arnold Schwarzenegger is a seven-time Mr. Olympia and three-time Mr. Universe, who has admitted to using steroids; Barry Bonds broke the record for career home runs after using anabolic steroids. With great athletes like them in the world’s spotlight, it is hard not to want to try out anabolic steroids and see what potentials one can unlock. Anabolic

The Price of Beauty

604 words - 2 pages they really are.Cosmetic surgery is not cheap, and in most cases is not worth the money. A facelift alone ranges in price from 6,000 to 12,000 plus dollars (Plastic Surgery Facts). With a face transplant, not only does the patient pay a lot of money for the operation, they have to pay 2,000 dollars per month for the medication that convinces the patient's body to not reject the foreign tissue (Springen). Even a procedure as little as lip

The Price of Nationalism

1981 words - 8 pages . Indeed, Aeneas's sense of duty and dignity toward non-Trojans disintegrated the moment he allowed remorse for his fallen comrade lead his rational mind to murder. Aeneas and Turnus were bitter adversaries, even echoing the character dynamic dictating Hektor and Achilles's interaction in The Iliad. However, throughout the entirety of his journey, it is self-evident that Aeneas is a warrior more than capable of showing mercy and compassion toward his

Titration-finding the concentration of a solution of sulphuric acid

2455 words - 10 pages · I will make a solution where the solute will be the sodium carbonate and the solvent will be distilled water.· I will first measure the weighing bottle on its own without the lid on.· I will then make the weight of the bottle equal to 0.00g on the balance.· I will add 2.650g of sodium carbonate using a spatula.· I will then pour the sodium carbonate into a beaker, which

The Regression of Human Rights Under the Putin Administration Russia

1713 words - 7 pages The Regression of Human Rights Under the Putin AdministrationFollowing the collapse of the Soviet Union, there were many changes enacted to the Russian government that sought to reform (over time) the former Communist Soviet nation into an idyllic picture of Western Democracy. By the turn of the century Russia was beginning to demonstrate several signs that hinted at a healthy democracy were beginning to emerge. These signs included such

Price Theory and Price Elasticity: Using the article: "China sees shortfall in grain output".

884 words - 4 pages by using the results is seeing if it is over or under the number 1. If the elasticity of demand or supply is greater than or equal to 1, this means that the percentage change in quantity is greater than the percentage change in price, the curve will then be more horizontal showing that it is elastic, meaning small price changes will have a large effect on demand or supply.In China there was a 40 million ton drop in the supply of grain this caused

the essay is an economics paper abt the relation between S&P500 and NASDAQ, using regression and other statistical tools

2419 words - 10 pages IN CIRC) + 11(FIN EMPL) +The dependant variable here being the NASDAQ composite index using the same independent variables listed above and used in the model for the S&P 500 regression analysis.Presence of Dummy variable:Dummy variable has been introduced to measure the quantitative effect of the Sept 11 attacks on the S&P500 and the market as a whole. This would include the effect these attacks had on the NASDAQ.: The Error term used in

The High Price of Adoption

1629 words - 7 pages who needs a loving home. While the idea of adoption sounds so perfect and great, one huge factor makes the adoption choice somewhat difficult. One would never think of putting a “price” on their own child yet adoption is extremely pricey. A couple looking to adopt better be prepared to spend roughly $35,000 (babycenter). Personally, that number shocked me. Who finds it necessary to put such a high cost on the love between parents and a child

The price of objectivity (crit

792 words - 3 pages The Price of Objectivity The Sun Also Rises by Ernest Hemingway is one of the pre-eminent works of modernist literature. It set the tone for the several decades of literature that was to follow. It delves deeply into the 'lost generation' that was created after the first wold war. A generation that lost any idealism that their predecessors had. A generation that lost any emotional attachment to the world around them. This is a trait that is

Similar Essays

Finding A Home Using Online Resources

810 words - 3 pages In this activity you will need to go to the website. Follow the instructions for "Finding a Home", and check housing prices for a 3-bedroom, 2-bath house in several cities, for example, San Francisco, CA; Topeka, KS; Dallas, TX; Concord MA; and Seattle, WA. Explain why housing prices vary from city to city. Clearly explain how supply and demand affect the prices of the homes and be sure to show your work.Based on the information

Finding The Concentration Of A Potato Cell.

3783 words - 15 pages AimThe aim is to find the concentration (mole/dm3 (M)) of solute in a potato cell by using the process of osmosis and different concentrations of sucrose solution.Background informationOsmosis is diffusion of water across a partially permeable membrane. It moves from a solution with less solute concentration (high water potential) to a solution with more solute concentration (low water potential). The one with a high water concentration is

The Pronounced Regression Of Today's Society

1499 words - 6 pages “A refreshed mind is a creative and productive one,” is a quote written by Kathy Bell, in her book Regression (Bell). In a society that is continuing to regress to the ways of previous historical times, does it make you think that maybe no one is working to keep their mind refreshed and allow our society to grow as opposed to it going backwards? Particular aspects of our society are regressing to ways that can be compared to those of the

The Price Of Freedom Essay

1275 words - 5 pages The Price of Freedom In one’s lifetime they will see millions of advertisements claiming “this is free or that is free”, yet by the age of ten one can tell it’s all normally just a gimmick to get someone to buy more than they really need. In reality nothing is truly free, even the water that is drank everyday is not free. What is really strange is that all of this is experienced within “The Land of the Free”. Nothing in America is free