Question

GBA 306 Statistical Methods of Business II – Case Study – Indiana Real Estate

Ann Perkins, a realtor in Brownsburg, Indiana, would like to use estimates from a multiple regression model to help prospective sellers determine a reasonable asking price for their homes. She believes that the following four factors influence the asking price (Price) of a house:

1. The square footage of the house (SQFT)
2. The number of bedrooms (Bed)
3. The number of bathrooms (Bath)
4. The lot size (LTSZ) in acres

She randomly collects online listings for 50 single-family homes. The data file is located in the Blackboard “Case Study Indiana Real Estate Data File Excel” within the Case Study folder.

Part 3 – Interpret the resulting coefficient of determination.

A total of 5 points will be assigned to Part 3.

Part 4 – Write your findings in thorough, concise, and well-written report form. For an example review and refer to other reports throughout your textbook. There is at least one at the end of each chapter. Please note: you are expected to use proper statistical terminology when appropriate but remember you are writing for a group who may not be as knowledgeable about statistics as you are. You must be sure they can understand your findings while also writing a professional report.

A total of 20 points will be assigned to Part 4.

Answer 1