Statistical question

fzbunagl
timer Asked: Mar 13th, 2016

Question Description

Data Analysis and Decision Making book.

Chapter10, Regression Analysis: Estimation Relationships, Page 597, Case 10.2 Housing Price Structure in Mid City.

Sales of single-family houses have been brisk in Mid City this year. This has especially been true in older, more established neighborhoods, where housing is relatively inexpensive compared to the new homes being built in the newer neighborhoods. Nevertheless, there are also many families who are willing to pay a higher price for the prestige of living in one of the newer neighborhoods. The file uploaded Mid+City 2.xlsx for the second problem MidCity.xlsx contains data on 128 recent sales in Mid City. For each sale, the file shows the neighborhood (1, 2, or 3) in which the house is located, the number of offers made on the house, the square footage, whether the house is made primarily of brick, the number of bathrooms, the number of bedrooms, and the selling price. Neighborhoods 1 and 2 are more traditional neighborhoods, whereas neighborhood 3 is a newer, more prestigious neighborhood.

Use regression to estimate and interpret the pricing structure of houses in Mid City. Here are some considerations.

A. Do buyers pay a premium for a brick house, all else being equal?

B. Is there a premium for a house in neighborhood 3, all else being equal?

C. Is there an extra premium for a brick house in neighborhood 3, in addition to the usual premium for a brick house?

D. For purposes of estimation and prediction, could neighborhoods 1 and 2 be collapsed into a single "older" neighborhood?


All tow problems needs to be solved on Excel Sheet with explanation for the answers in word doc. the data for second problem is attached.    



Unformatted Attachment Preview

This is fictitious data. Home 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 Nbhd 2 2 2 2 2 1 3 3 2 2 2 2 1 1 3 3 2 1 2 3 2 1 1 1 2 1 3 2 1 3 3 1 2 2 1 1 1 3 3 1 2 3 2 Offers 2 3 1 3 3 2 3 2 3 3 3 2 4 5 4 1 4 4 1 2 3 4 3 3 2 3 3 2 3 1 3 2 3 4 3 3 2 4 1 2 1 2 3 Sq Ft 1790 2030 1740 1980 2130 1780 1830 2160 2110 1730 2030 1870 1910 2150 2590 1780 2190 1990 1700 1920 1790 2000 1690 1820 2210 2290 2000 1700 1600 2040 2250 1930 2250 2280 2000 2080 1880 2420 1720 1740 1560 1840 1990 Brick No No No No No No Yes No No No Yes Yes No Yes No No Yes No Yes Yes No No No Yes Yes No No No No Yes Yes Yes Yes Yes No No No No No No No No No Bedrooms 2 4 3 3 3 3 3 4 4 3 3 2 3 3 4 4 3 3 2 3 3 3 3 3 4 4 4 3 2 4 4 2 3 5 2 3 2 4 3 3 2 4 2 Bathrooms 2 2 2 2 3 2 3 2 2 3 2 2 2 3 3 2 3 3 2 3 2 2 2 2 3 3 2 2 2 3 3 2 3 3 2 3 2 3 2 2 2 3 2 Price 114300 114200 114800 94700 119800 114600 151600 150700 119200 104000 132500 123000 102600 126300 176800 145800 147100 83600 111400 167200 116200 113800 91700 106100 156400 149300 137000 99300 69100 188000 182000 112300 135000 139600 117800 117100 117500 147000 131300 108200 106600 133600 105600 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 2 3 2 1 1 2 1 2 1 1 1 1 2 2 3 3 3 3 1 3 2 3 1 1 2 1 3 3 3 1 2 3 1 3 3 1 3 2 3 3 2 1 3 1 1 2 3 2 6 2 3 3 3 4 3 3 2 3 3 1 1 1 2 2 2 2 1 4 3 4 3 3 1 3 2 3 2 2 3 3 1 4 2 1 2 3 2 4 1920 1940 1810 1990 2050 1980 1700 2100 1860 2150 2100 1650 1720 2190 2240 1840 2090 2200 1610 2220 1910 1860 1450 2210 2040 2140 2080 1950 2160 1650 2040 2140 1900 1930 2280 2130 1780 2190 2140 2050 2410 1520 2250 1900 Yes Yes No No No No Yes Yes No No No No Yes Yes No No No No No No No No Yes No No No No Yes No No No No No No Yes No No Yes Yes Yes No No Yes No 3 3 3 2 3 2 3 3 2 2 3 3 2 3 4 3 4 3 2 4 2 3 2 3 4 3 4 3 4 3 3 3 2 3 4 3 4 3 4 2 3 2 4 4 2 3 2 3 2 2 2 2 2 3 2 2 2 2 3 3 2 3 2 3 3 2 2 3 3 2 3 3 2 2 3 3 2 2 3 2 2 3 3 2 3 2 3 2 154000 166500 103200 129800 90300 115900 107500 151100 91100 117400 130800 81300 125700 140900 152300 138100 155400 180900 100900 161300 120500 130300 111100 126200 151900 93600 165600 166700 157600 107300 125700 144200 106900 129800 176500 121300 143600 143400 184300 164800 147700 90500 188300 102700 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 3 1 1 3 2 3 2 3 3 2 2 3 3 1 2 2 3 2 3 1 2 2 2 1 1 2 1 2 1 3 1 1 1 1 2 2 2 2 1 3 1 1 2 4 2 2 2 2 3 1 3 1 1 2 5 5 4 3 4 4 4 1 3 3 1 2 2 3 2 3 1 2 3 4 3 3 1 3 3 2 1 4 1880 1930 2010 1920 2150 2110 2080 2150 1970 2440 2000 2060 2080 2010 2260 2410 2440 1910 2530 2130 1890 1990 2110 1710 1740 1940 2000 2010 1900 2290 1920 1950 1920 1930 1930 2060 1900 2160 2070 2020 2250 Yes No No No No No No Yes Yes No Yes No Yes No No No Yes No No No Yes Yes No No No Yes Yes No No Yes No Yes No No No Yes Yes Yes No No No 3 3 2 4 3 3 3 4 2 3 2 3 3 3 3 3 4 3 4 3 3 3 3 2 2 2 3 4 3 5 3 3 2 2 3 2 3 4 2 3 3 3 3 2 2 2 2 3 3 2 3 2 2 3 2 3 3 3 2 3 2 2 3 2 2 2 2 2 3 3 4 2 2 2 3 3 2 3 3 2 3 3 172500 127700 97800 143100 116500 142600 157100 160600 152500 133300 126800 145500 171000 103200 123100 136800 211200 82300 146900 108500 134000 117000 108700 111600 114900 123600 115700 124500 102500 199500 117800 150200 109700 110400 105600 144800 119700 147900 113500 149900 124600
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

This question has not been answered.

Create a free account to get help with this and any other question!

Related Tags

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors