2.) What are the important variables that predict Selling Price of houses? How d
ID: 3206618 • Letter: 2
Question
2.) What are the important variables that predict Selling Price of houses? How did you identify them to be important/significant variables?
3.) Is the model a good model for predicting the Selling Price of houses? If yes, why? If no, why not?
4.)List the significant variables that predict Selling Price of houses in the order of their importance? Explain why you ordered them this way.
Selling Price No. of Garages Square Footage Days on Market No. of Rooms No. of fireplaces No. of Baths Heat (Gas=1; electric=0) City/ Suburb (City=1;Suburb=0) $57,900 2 1,340 29 7 1 2 1 0 $67,900 2 1,300 20 7.5 1 1.5 1 0 $70,500 2 1,650 135 8.5 0 1.5 1 0 $72,000 2 2,000 188 10.5 1 2.5 0 0 $85,000 2 2,200 99 10.5 1 2.5 1 0 $90,000 1 2,000 21 8.5 1 1.5 1 0 $92,000 1 2,400 81 9 1 2 1 0 $93,000 2 2,300 175 10.5 2 2.5 1 0 $49,000 1 1,150 51 8 0 1 1 0 $66,900 2 1,500 14 9 1 2 1 0 $67,000 2 2,200 105 10.5 1 2.5 0 0 $73,000 2 1,900 67 10 0 2 1 0 $84,000 2 1,616 125 8.5 1 2.5 0 0 $86,000 2 2,000 34 10 1 2 1 0 $88,000 2 1,350 90 8 1 2 0 0 $105,000 2 4,000 182 11.5 1 2.5 1 0 $106,900 2 2,060 160 9.5 1 2.5 0 0 $210,000 2 3,991 133 13 3 3 0 0 $45,900 0 1,400 34 8 0 1 1 0 $48,500 1 860 25 7 0 1 1 0 $50,500 1 1,000 7 7 1 1 1 0 $57,900 1 1,442 104 7 1 1 1 0 $58,500 1 1,378 2 9.5 1 1.5 1 0 $59,000 0 1,270 46 8 1 1 0 0 $70,000 2 2,000 52 10.5 1 2.5 0 0 $70,000 2 2,000 49 10.5 1 2.5 1 0 $80,000 2 2,200 153 10.5 1 2.5 1 0 $81,000 2 1,800 35 11 1 2 0 0 $81,900 2 1,782 13 10.5 1 2.5 1 0 $82,000 2 2,040 58 10.5 1 2.5 1 0 $82,900 2 2,082 33 11.5 1 2.5 1 0 $84,250 2 2,400 7 13.5 1 2.5 1 0 $84,500 2 2,000 2 11.5 1 2.5 1 0 $86,000 2 2,000 29 11.5 1 2.5 1 0 $87,500 2 1,900 84 9 2 2 1 0 $90,000 2 2,075 118 10 2 2 1 0 $90,000 2 2,000 51 11.5 1 2.5 1 0 $90,000 2 2,200 76 11.5 1 2.5 1 0 $118,000 2 2,460 35 11 1 3 1 0 $145,000 2.5 2,500 93 11.5 3 2.5 0 0 $30,500 0 931 79 9 1 1 1 1 $43,000 2 1,263 28 8 1 1 1 1 $44,000 1 1,200 32 8.5 1 2.5 1 1 $44,900 0 1,500 140 8 0 1 0 1 $48,500 0 1,500 11 9 0 1 1 1 $59,000 1.5 1,600 66 9 1 2 1 1 $59,100 2 2,000 108 9.5 1 1.5 0 1 $59,900 2.5 1,900 178 11 1 2 1 1 $60,500 2 1,800 58 7.5 1 1.5 1 1 $67,500 1.5 1,460 74 8.5 1 1.5 1 1 $67,500 2.5 1,600 21 10 1 2 1 1 $70,000 3 1,800 27 11.5 1 2.5 1 1 $85,000 2 2,800 53 10.5 2 2.5 1 1 $92,000 2 3,029 60 10 2 2 1 1 $40,000 0 1,464 54 7 0 1 1 1 $40,500 0 1,300 133 8 0 1 1 1 $41,000 1 1,011 63 7 1 2 1 1 $42,900 0 1,218 15 8 0 1 1 1 $42,900 1 1,092 47 7 1 1 1 1 $43,500 0 1,500 20 7 0 1 1 1 $44,950 1.5 1,500 88 8 1 1 1 1 $46,000 2 1,125 18 8.5 1 1.5 1 1 $47,000 2 1,118 46 8.5 0 1.5 1 1 $53,000 2 1,323 24 7 0 1 0 1 $56,600 2 1,700 89 9 1 2 1 1 $56,600 2 1,600 30 9 1 2 0 1 $56,900 1.5 1,456 62 8.5 1 1.5 1 1 $56,900 1.5 1,200 16 7 0 1 1 1 $56,900 1 1,420 15 7.5 1 1.5 1 1 $58,000 2 1,850 51 9.5 1 1.5 0 1 $59,500 2 1,800 113 11 2 2 1 1 $59,900 2 1,450 80 8.5 1 1.5 1 1 $66,500 2 1,600 28 8.5 1 1.5 1 1 $67,000 1 2,000 20 8.5 2 2.5 1 1 $68,500 2 2,000 35 10 1 3 1 1 $70,000 1 2,250 55 12 1 3 1 1 $72,000 2 1,800 18 9 1 2 1 1 $72,500 1 2,200 30 11.5 1 2.5 1 1 $75,900 2 1,719 19 9.5 1 2.5 1 1 $76,900 2 1,768 75 8.5 1 2.5 0 1 $89,500 2 1,851 120 10 2 2 1 1 $94,000 2 2,350 57 10.5 1 2.5 1 1 $125,000 2.5 2,350 67 9.5 2 2.5 1 1 $99,500 2 2,200 21 11 2 3 1 1 $75,000 2 1,435 61 9 1 2 0 1 $74,600 1 2,000 98 8.5 1 2.5 0 1 $66,000 3 2,300 30 8.5 2 1.5 1 1 $65,000 2 1,744 23 9 1 2 1 1 $64,700 2.5 1,728 87 10.5 0 2.5 1 1 $60,000 1 2,000 26 10 1 2 1 1Explanation / Answer
2.) What are the important variables that predict Selling Price of houses? How did you identify them to be important/significant variables?
Ans: The important variables that predict Selling Price of houses are Square Footage, No. of fireplaces, Heat (Gas=1; electric=0) and City/ Suburb (City=1;Suburb=0). Because their p-values are less than 0.05 level of significance.
3.) Is the model a good model for predicting the Selling Price of houses? If yes, why? If no, why not?
Ans: Yes, The estimated R-Square value is 0.784. hence 78.40% of price information is explained by the explanatory variables, so the model is a good model for predicting the Selling Price of houses
4.) List the significant variables that predict Selling Price of houses in the order of their importance? Explain why you ordered them this way.
Ans:
Ascending order is Heat, Square Footage, No. of fireplaces, City and Heat. Because of Sum of Square.
Dependent Variable:Price Source Type III Sum of Squares df Mean Square F Sig. Corrected Model 43977049249.542 9 4886338805.505 32.297 .000 Intercept 538965414.682 1 538965414.682 3.562 .063 N_Garages 175819629.574 1 175819629.574 1.162 .284 S_Footage 5909061818.509 1 5909061818.509 39.057 .000 D_Market 200082636.400 1 200082636.400 1.322 .254 N_Room 83872397.547 1 83872397.547 .554 .459 N_fireplaces 1912424402.643 1 1912424402.643 12.640 .001 N_Bath 292604797.012 1 292604797.012 1.934 .168 Heat 732929141.477 1 732929141.477 4.844 .031 City 2761106397.155 1 2761106397.155 18.250 .000 Heat * City 237661134.579 1 237661134.579 1.571 .214 Error 12103600750.458 80 151295009.381 Total 514682875000.000 90 Corrected Total 56080650000.000 89Related Questions
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