A successful estate agency is considering expanding its business into a new city

Question

A successful estate agency is considering expanding its business into a new city. The company wishes to conduct market research about the housing market in that city. It is interested in what types of houses sell quickly and what types of houses sell slowly. The main source of data is a local free newspaper that contains weekly advertisements of house sales by existing local estate agencies. (a) Describe any work that should be undertaken in order to prepare the input data for a sensible data analysis. (b) If the company is interested in determining which types of houses sell quickly (within two weeks of the advertisement first appearing), what data mining tasks do we need to perform on the input data prepared in (a)? What types of pattern can be useful for the purpose? (c) How do we measure the interestingness of the patterns discovered in (b)?

Explanation / Answer

a)for different types of houses we should make a frequency distribution of the number of advertisements that would give us an idea about selling. We can also keep track how long an advertisement is there for a house.If it is removed then we would know that it is bought or rented.

b)we can do testing of equaltiy of mean number of days required for a type of house to be rented.from that we can get an idea.

also if we see that there is an increasing trend in a oarticular category then we should go for that,For that we need to do time series analysis and may fit AR or MA or ARIMA model

c)we can fit mathematical equation for trend or do moving average with suitable cycle or period

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