businesses in all industries use data to provide an intuitive analysis of how they can get a competitive advantage. The real estate industry heavily uses linear regression to estimate home prices, as cost of housing is currently the largest expense for most families. Additionally, in order to help new homeowners and home sellers with important decisions, real estate professionals need to go beyond showing property inventory. They need to be well versed in the relationship between price, square footage, build year, location, and so many other factors that can help predict the business environment and provide the best advice to their clients.

Prompt

You have been recently hired as a junior analyst by D.M. Pan Real Estate Company. The sales team has tasked you with preparing a report that examines the relationship between the selling price of properties and their size in square feet. You have been provided with a Real Estate Data spreadsheet that includes properties sold nationwide in recent years. The team has asked you to select a region, complete an initial analysis, and provide the report to the team.

Note: In the report you prepare for the sales team, the response variable (y) should be the listing price and the predictor variable (x) should be the square feet.

Specifically you must address the following rubric criteria, using the Module Two Assignment Template:

• Generate a Representative Sample of the Data
  • Select a region and generate a simple random sample of 30 from the data.
  • Report the mean, median, and standard deviation of the listing price and the square foot variables.
• Analyze Your Sample
  • Discuss how the regional sample created is or is not reflective of the national market.
    • Compare and contrast your sample with the population using the National Summary Statistics and Graphs Real Estate Data document.
  • Explain how you have made sure that the sample is random.
    • Explain your methods to get a truly random sample.
• Generate Scatterplot
  • Create a scatterplot of the x and y variables noted above and include a trend line and the regression equation
• Observe patterns
  • Answer the following questions based on the scatterplot:
    • Define x and y. Which variable is useful for making predictions?
    • Is there an association between x and y? Describe the association you see in the scatter plot.
    • What do you see as the shape (linear or nonlinear)?
    • If you had a 1,800 square foot house, based on the regression equation in the graph, what price would you choose to list at?
    • Do you see any potential outliers in the scatterplot?
      • Why do you think the outliers appeared in the scatterplot you generated?
      • What do they represent?

You can use the following

MY REGION

East North Central	in	grant	219,500	$116	1,898
East North Central	il	vermilion	254,500	$156	1,632
East North Central	in	henry	235,000	$148	1,588
East North Central	in	wayne	203,800	$141	1,441
East North Central	il	coles	220,800	$117	1,893
East North Central	il	macoupin	197,600	$111	1,783
East North Central	in	vigo	165,800	$122	1,362
East North Central	oh	jefferson	246,500	$136	1,814
East North Central	il	jackson	154,300	$105	1,463
East North Central	oh	marion	149,700	$116	1,296
East North Central	mi	bay	145,100	$117	1,239
East North Central	il	whiteside	283,700	$136	2,087
East North Central	oh	trumbull	243,000	$133	1,827
East North Central	in	madison	229,100	$187	1,224
East North Central	il	knox	205,100	$118	1,740
East North Central	il	stephenson	235,600	$140	1,682
East North Central	il	macon	212,900	$128	1,659
East North Central	in	delaware	221,600	$134	1,651
East North Central	il	henry	257,700	$123	2,087
East North Central	oh	seneca	211,900	$168	1,263
East North Central	oh	darke	160,800	$114	1,416
East North Central	oh	scioto	204,200	$131	1,562
East North Central	oh	belmont	172,500	$101	1,710
East North Central	oh	sandusky	253,900	$146	1,738
East North Central	il	rock island	166,300	$127	1,305
East North Central	oh	clark	240,500	$137	1,752
East North Central	oh	columbiana	241,400	$164	1,469
East North Central	in	howard	304,300	$152	1,996
East North Central	oh	richland	248,900	$132	1,880
East North Central	il	peoria	187,900	$131	1,434
East North Central	il	la salle	311,100	$154	2,015
East North Central	il	madison	254,500	$156	1,628
East North Central	mi	wayne	213,800	$172	1,243
East North Central	in	vanderburgh	214,100	$134	1,596
East North Central	oh	mahoning	207,500	$123	1,688
East North Central	il	williamson	171,600	$141	1,218
East North Central	il	winnebago	236,700	$140	1,692
East North Central	il	adams	266,100	$166	1,599
East North Central	mi	saginaw	171,800	$118	1,452
East North Central	oh	montgomery	225,300	$151	1,493
East North Central	oh	allen	227,600	$147	1,550
East North Central	oh	lucas	228,300	$115	1,978
East North Central	oh	ashtabula	177,000	$107	1,658
East North Central	oh	lawrence	248,300	$156	1,587
East North Central	oh	huron	199,700	$147	1,359
East North Central	il	tazewell	278,700	$165	1,693
East North Central	oh	summit	185,800	$101	1,847
East North Central	il	sangamon	213,500	$130	1,643
East North Central	oh	ashland	188,000	$151	1,246
East North Central	oh	tuscarawas	270,700	$149	1,815
East North Central	oh	ross	257,200	$127	2,018
East North Central	mi	shiawassee	192,400	$129	1,494
East North Central	mi	calhoun	266,200	$130	2,042
East North Central	il	kankakee	148,700	$115	1,293
East North Central	in	lawrence	270,600	$137	1,978
East North Central	wi	manitowoc	181,400	$140	1,294
East North Central	il	st. clair	201,400	$164	1,225
East North Central	mi	ingham	222,500	$125	1,777
East North Central	il	mclean	203,800	$134	1,526
East North Central	mi	jackson	139,200	$116	1,201
East North Central	mi	isabella	163,000	$125	1,307
East North Central	wi	wood	266,500	$144	1,853
East North Central	mi	montcalm	218,300	$105	2,081
East North Central	wi	grant	243,200	$121	2,014
East North Central	oh	cuyahoga	265,100	$136	1,947
East North Central	oh	stark	201,000	$163	1,230
East North Central	oh	athens	246,400	$158	1,560
East North Central	wi	milwaukee	184,900	$111	1,666
East North Central	mi	lenawee	191,500	$118	1,628
East North Central	wi	fond du lac	135,300	$103	1,312
East North Central	in	st. joseph	193,000	$111	1,736
East North Central	mi	ionia	193,600	$137	1,416
East North Central	mi	genesee	194,800	$166	1,173
East North Central	oh	muskingum	188,300	$94	1,999
East North Central	il	ogle	236,600	$208	1,138
East North Central	oh	washington	324,400	$156	2,081
East North Central	oh	wayne	256,700	$129	1,986
East North Central	mi	muskegon	230,400	$131	1,757
East North Central	oh	pickaway	265,700	$143	1,853
East North Central	mi	st. joseph	188,500	$135	1,397
East North Central	il	champaign	246,700	$121	2,031
East North Central	oh	knox	192,200	$127	1,510
East North Central	oh	lorain	226,200	$126	1,789
East North Central	wi	calumet	226,400	$111	2,033
East North Central	mi	midland	174,500	$151	1,157
East North Central	mi	marquette	172,500	$120	1,433
East North Central	in	elkhart	202,300	$182	1,113
East North Central	mi	monroe	228,600	$136	1,679
East North Central	oh	lake	225,900	$135	1,676
East North Central	mi	eaton	189,900	$96	1,976