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:
- The square footage of the house (SQFT)
- The number of bedrooms (Bed)
- The number of bathrooms (Bath)
- 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.
Requirements and associated point values:
Part 1 – Provide summary statistics (with Excel Data Analysis) by calculating the mean and standard deviation on the asking price, square footage, the number of bedrooms, the number of bathrooms, and the lot size. Explain each factor’s mean and standard deviation. What does each of these summary statistics tell us.
A total of ten calculations 2 points each for a total of 20 points.
Part 2 – Estimate and interpret a multiple regression model where the asking price is the response variable and the other four factors are the explanatory variables.
The end result should be a Excel Regression Output
| SUMMARY OUTPUT | ||||||||
| Regression Statistics | ||||||||
| Multiple R | ||||||||
| R Square | ||||||||
| Adj. R Square | ||||||||
| Standard Error | ||||||||
| Observations | ||||||||
| ANOVA | ||||||||
| Df | SS | MS | F | Significance F | ||||
| Regression | ||||||||
| Residual | ||||||||
| Total | ||||||||
| Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | |||
| Intercept | ||||||||
| SQFT | ||||||||
| Bed | ||||||||
| Bath | ||||||||
| LTSZ | ||||||||
Also provide the estimate model equation: Price =
A total of 30 points will be assigned to Part 2.
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.
Part 5 – Prepare your report in a PowerPoint Presentation and record your presentation within Tegrity according to the instructions provided in the Blackboard “PowerPoint Presentation Case Study Information” located within the Case Study folder.
A total of 35 points will be assigned to Part 5.
The submission link to attach your Case Study Report, PowerPoint Presentation and Excel Data Output Worksheet is located in the same Case Study folder. You will record your PowerPoint Presentation under “Student Recordings” within Tegrity. Refer to the course schedule for the Case Study due date. The case study is valued at a total of 110 points.