Case Study No.1

There are numerous variables that are believed to be predictors of housing sale prices, including age, living area (square feet), number of bedrooms, and number of bathrooms. The data in the Case Study No. 1 Data.xlsx file pertains to a random sample of houses located in a particular geographic area.

Develop a simple linear regression model to predict the price of a house based upon its age using a 90% level of confidence.

Write the reqression equation.

Discuss the joint and individual statistical significance of the model using the appropriate regression statistic at a 90% and 95% level of confidence.

Interpret the coefficient for the independent variable.

What percentage of the observed variation in housing sale prices is explained by the model?

Predict the value of a house that is 35 years old.

Develop a simple linear regression model to predict the price of a house based upon the living area (square feet) using a 90% level of confidence.

Write the reqression equation.

Discuss the joint and individual statistical significance of the model using the appropriate regression statistic at a 90% and 95% level of confidence.

Interpret the coefficient for the independent variable.

What percentage of the observed variation in housing sale prices is explained by the model?

Predict the value of a house with 2,500 square feet of living area.

Develop a simple linear regression model to predict the price of a house based upon the number of bedrooms using a 90% level of confidence.

Write the reqression equation.

Discuss the joint and individual statistical significance of the model using the appropriate regression statistic at a 90% and 95% level of confidence.

Interpret the coefficient for the independent variable.

What percentage of the observed variation in housing sale prices is explained by the model?

Predict the value of a house with 3 bedrooms.

Develop a simple linear regression model to predict the price of a house based upon the number of bathrooms using a 90% level of confidence.

Write the reqression equation.

Discuss the joint and individual statistical significance of the model using the appropriate regression statistic at a 90% and 95% level of confidence.

Interpret the coefficient for the independent variable.

What percentage of the observed variation in housing sale prices is explained by the model?

Predict the value of a house with 1.5 bathrooms.

Compare the four simple linear regression models and select the preferred model. Explain your selection using the appropriate regression statistics.

Prepare a single Microsoft Excel file, using a separate worksheet for each regression model, to document your regression analyses. Prepare a single Microsoft Word document that outlines your responses for each of the preceding portions of the case study.

Selling Price	Age (Years)	Living Area (Sq Feet)	No. Bathrooms	No Bedrooms
$134,900	10	1,782	2.5	3
$64,500	16	1,480	2.5	2
$142,000	20	1,426	2	3
$125,000	32	1,404	2	3
$88,000	15	1,480	1.5	3
$135,000	135	1,344	1	3
$90,000	14	1,480	2.5	2
$90,100	15	1,480	1.5	3
$126,900	10	1,596	2.5	3
$208,767	0	1,662	2	3
$186,000	0	2,000	2.5	4
$93,000	14	1,480	1.5	3
$257,386	0	2,969	4	4
$161,000	10	1,542	2.5	3
$92,000	18	1,527	2	4
$211,002	0	2,195	2.5	4
$115,000	14	1,480	1.5	3
$113,000	53	1,452	2	3
$216,300	0	2,360	2.5	4
$145,000	32	1,440	1	3
$114,000	14	1,480	2.5	2
$139,050	125	1,879	2.5	3
$104,000	14	1,480	1.5	3
$169,900	11	1,792	2.5	3
$177,900	2	1,386	2.5	3
$133,000	14	1,676	2	2
$185,000	0	768	2	4
$115,000	16	1,560	1.5	3
$100,000	91	1,000	1	3
$117,000	15	1,676	1.5	4
$150,000	11	1,656	1.5	3
$187,500	11	2,300	1.5	3
$107,000	25	1,712	1	3
$126,900	26	1,350	1.5	3
$147,000	15	1,676	2.5	3
$62,000	103	1,317	1.5	3
$101,000	30	1,056	2	3
$143,500	13	912	1	3
$113,400	18	1,232	2	2
$112,000	36	1,280	1	3
$112,500	43	1,232	1	3
$97,000	45	1,406	1.5	3
$121,000	6	1,164	2	3
$65,720	123	1,198	1	3
$225,000	10	2,206	2.5	4
$192,000	0	1,880	2.5	3
$158,500	6	1,368	1.5	3
$247,000	16	1,901	2.5	3
$193,777	11	1,547	2	3
$136,500	12	896	2	3
$75,000	45	1,008	1	3
$45,000	75	912	1	2
$243,000	12	2,443	2.5	3
$90,000	83	900	1	4
$158,000	0	2,098	2	3
$174,000	9	2,115	2.5	4
$150,000	12	1,344	2	2
$159,650	3	1,106	1	3
$139,062	33	1,440	2	3
$84,950	0	840	1	2
$102,000	10	1,170	1	2
$175,000	15	1,664	1	4
$78,500	153	3,024	1	4
$232,478	0	2,598	2.5	4
$93,805	0	840	1.5	2
$119,900	63	1,701	1	5
$146,000	33	1,456	1.5	3
$125,000	44	1,224	1	3
$135,000	48	1,411	1	3
$157,500	29	1,608	1.5	3
$135,000	178	3,020	2.5	4
$142,900	32	1,898	1.5	3
$259,900	1	2,544	2.5	4
$85,000	16	1,038	1	2
$180,377	1	1,820	2.5	3
$163,500	21	2,202	2	3
$106,500	53	2,387	1	3
$115,000	16	1,368	1.5	2
$115,000	16	1,480	2	2
$135,000	15	1,348	1.5	2
$198,900	7	1,889	2.5	4
$139,000	16	1,343	1.5	2
$206,000	15	2,011	2.5	3
$120,000	15	1,180	1.5	2
$205,980	1	1,983	2.5	3
$275,000	14	2,253	2.5	3
$139,000	12	1,604	1.5	2
$89,900	83	1,196	1	3
$139,900	13	1,602	2.5	2
$172,750	1	1,747	2.5	3
$136,000	37	1,092	1	3
$270,000	10	2,410	2.5	4
$174,000	14	1,933	2.5	3
$379,000	9	3,080	2.5	4
$382,500	13	4,534	2.5	6
$144,900	14	1,677	2.5	3
$349,900	7	2,900	2.5	4
$133,000	16	1,392	1.5	2
$115,000	15	1,058	1.5	2
$211,950	1	2,342	2.5	4
$227,812	0	2,206	2.5	4
$164,400	1	1,516	2	3
$340,000	12	2,836	2.5	4
$139,900	15	1,256	1.5	2
$279,900	6	2,340	3.5	4
$225,000	0	2,129	2.5	4
$144,500	15	1,343	2.5	2
$362,710	0	2,963	2.5	4
$247,000	13	2,114	3.5	4
$120,000	16	1,144	1	2
$136,000	33	988	1	3
$228,500	9	1,475	2	3
$162,800	10	1,247	1.5	3
$230,000	48	1,912	2	5
$115,800	23	1,440	1.5	3
$175,000	16	1,596	2	3
$263,008	0	2,665	2.5	4
$146,000	35	1,984	1.5	3
$204,900	10	1,616	2	3
$265,000	9	1,917	2.5	3
$167,500	37	2,592	1.5	3
$205,000	6	1,845	2.5	3
$170,000	53	1,360	1	4
$176,000	35	1,664	1.5	3
$132,000	15	1,098	1.5	2
$115,500	17	1,214	1.5	2
$150,000	93	1,046	1	3
$120,000	103	1,144	1	3
$125,000	16	1,140	2	2
$150,000	14	1,232	1.5	2
$362,360	0	3,020	2.5	4
$133,500	19	1,508	2	3
$91,000	19	912	1.5	2
$104,000	18	1,508	1.5	3
$148,000	17	1,561	1.5	3
$182,000	30	2,625	2.5	4
$152,500	30	936	1	3
$97,000	19	912	1.5	2
$113,000	16	1,492	2.5	3
$172,000	30	1,599	2.5	4
$179,900	25	2,304	2.5	5
$84,000	19	912	1.5	2
$117,900	17	1,385	1.5	2
$177,000	17	1,561	1.5	4
$107,500	20	884	2	2
$92,500	18	912	2	2
$102,900	17	912	1.5	2
$134,800	73	1,384	2	3
$150,000	7	1,334	1.5	3
$115,900	16	1,385	1.5	2
$100,000	18	912	1.5	2
$171,000	18	1,548	2	3
$188,000	17	1,561	1.5	4
$140,000	24	1,008	1	2
$124,500	17	1,385	1.5	2
$107,200	19	908	1	2
$107,500	138	2,246	1.5	4
$180,000	16	1,820	2.5	3
$214,325	0	2,554	2.5	4
$128,850	16	824	1.5	3
$208,700	0	2,458	2.5	4
$139,900	22	1,324	1	3
$350,000	12	2,916	2.5	3
$108,000	19	1,032	1.5	2
$115,500	16	912	1.5	2
$135,000	35	1,320	1	2
$135,000	17	1,508	1.5	3
$107,400	16	912	1.5	2
$233,000	12	2,040	2.5	4
$105,000	17	912	1.5	2
$335,000	10	1,776	2	2
$139,000	25	1,304	2	3
$209,500	10	1,836	2.5	4
$101,000	18	912	2	2
$77,500	19	912	1.5	2
$150,500	16	1,527	2	2
$167,000	17	1,454	1.5	3
$114,000	26	1,700	1.5	3
$160,000	27	1,680	1	4
$85,000	0	2,401	2.5	4
$143,000	21	1,176	1	3
$126,000	24	1,344	1.5	3
$140,000	23	1,344	1.5	3
$140,000	9	1,714	2.5	3
$205,000	20	1,992	3	4
$79,900	19	924	1	2
$139,000	24	1,290	1.5	2
$190,000	36	2,521	2.5	4
$151,500	58	1,377	1.5	3
$97,500	19	1,237	1.5	2
$194,500	41	2,310	2.5	4
$195,160	0	1,863	2.5	3
$152,500	26	1,693	1.5	3
$159,500	26	1,684	2.5	3
$185,000	16	1,585	1.5	3
$240,000	8	2,290	3	4
$187,900	32	2,464	2.5	5
$262,000	5	2,549	2.5	4
$212,500	6	2,316	2.5	4
$220,000	18	2,600	2.5	4
$245,000	15	2,677	2.5	4
$120,000	19	1,479	1.5	3
$102,500	16	1,138	1	2
$136,000	24	1,576	2.5	3
$212,500	10	2,084	2.5	4
$205,900	26	1,726	2	3
$259,900	2	1,851	2	2
$191,500	30	2,310	2.5	5
$272,500	0	2,930	2.5	4
$191,500	33	2,576	2.5	4
$158,000	36	1,664	2	3
$195,000	24	1,237	1.5	2
$187,500	29	2,662	2.5	5
$160,000	35	1,575	1.5	3
$137,500	12	1,566	1.5	2
$109,900	16	1,326	1.5	2
$85,000	18	1,480	1.5	3
$184,350	0	2,161	2.5	4
$134,500	10	1,352	1.5	2
$154,900	33	1,648	1.5	3
$255,000	25	2,936	3.5	3
$238,600	1	2,404	2.5	4
$106,000	36	1,738	1.5	3
$625,000	14	5,228	4	4
$195,000	34	2,576	2.5	4
$168,500	34	1,586	1.5	3
$87,000	19	1,480	1.5	3
$215,000	15	1,917	2.5	4
$197,500	30	1,938	1.5	3
$215,000	3	2,110	2.5	4
$118,000	19	1,479	1.5	3
$187,900	34	2,576	2.5	5
$275,000	18	2,445	2.5	4
$249,900	14	2,185	2.5	3
$270,000	18	2,078	2.5	4
$157,900	37	1,674	1.5	3
$120,000	19	1,228	1.5	4
$126,400	22	1,375	1.5	2
$220,000	16	1,650	2	3
$180,000	31	1,718	1.5	3
$203,600	33	2,576	2.5	4
$249,900	4	2,280	2.5	4
$193,000	18	2,088	2.5	4
$215,000	15	1,917	2.5	4
$201,000	29	3,140	3.5	5
$65,000	73	1,029	1	3
$195,000	36	1,896	2.5	4
$215,900	38	2,310	2.5	5
$92,000	17	924	1	2
$155,000	25	2,080	2.5	3
$123,500	22	1,237	1.5	3
$110,400	29	1,287	1.5	3
$198,900	18	1,847	2.5	3
$150,000	49	1,064	1	3
$104,000	18	1,480	1.5	3
$245,000	23	2,462	3.5	5
$180,000	17	2,228	2.5	3
$154,300	61	1,260	1	3
$170,000	30	1,559	2.5	4
$219,000	25	1,980	2.5	4
$295,000	9	2,380	2.5	3
$181,500	27	1,887	2.5	4
$260,000	133	2,185	1.5	4
$239,900	15	2,488	2.5	4
$135,500	56	1,152	2	1
$191,500	15	2,025	2.5	4
$225,000	37	2,521	2.5	5
$98,500	18	1,480	1.5	3
$110,500	17	1,480	1.5	3
$290,000	7	2,362	2.5	4
$184,400	31	1,910	1.5	3
$178,500	12	1,952	2	3
$415,000	9	3,358	3.5	4
$244,900	26	2,090	2.5	4
$150,000	35	1,965	2	5
$168,000	33	2,110	1.5	4
$159,000	43	1,456	2.5	4
$127,000	18	1,479	1.5	3
$175,000	29	1,874	2.5	4
$255,250	0	2,099	2.5	4
$175,000	33	1,872	2.5	3
$235,000	17	2,388	2.5	4
$324,000	18	2,812	2.5	4
$173,000	11	1,064	2	2
$116,900	20	1,375	1.5	2
$105,900	19	1,480	1.5	3
$112,000	25	1,260	1.5	2
$235,000	15	2,086	2.5	3
$235,000	9	2,588	2.5	4
$130,000	18	1,480	1.5	3
$235,000	10	1,752	2.5	3
$191,900	32	2,660	2.5	4
$284,900	20	2,417	2.5	3
$335,000	21	2,793	2.5	3
$140,000	78	1,152	1	2
$191,000	29	2,344	2.5	4
$153,000	33	1,926	1.5	4
$196,000	35	2,208	2.5	4
$248,000	16	2,208	2.5	3
$240,000	35	2,708	2.5	5
$132,000	18	1,142	1.5	3
$199,000	32	2,529	2	3
$217,000	20	1,797	2	4
$167,000	31	1,611	1.5	3
$245,000	13	2,576	2.5	4
$358,000	10	2,653	2.5	4
$412,500	13	3,896	4.5	5
$208,000	16	1,585	1	3
$270,000	10	2,774	2.5	4
$100,000	54	1,283	1	2
$130,000	29	1,136	1	3
$182,500	32	1,896	2.5	4
$139,000	55	1,536	1	2
$104,000	19	1,480	1.5	3
$221,000	14	2,096	2.5	4
$260,000	8	2,324	2.5	4
$182,500	29	2,079	2.5	4
$196,000	33	1,911	1.5	4
$132,000	18	1,480	1.5	3
$224,900	25	2,208	2.5	4
$199,900	9	1,462	2.5	3
$165,835	38	1,794	1.5	4
$189,000	38	1,886	2.5	4
$89,900	19	1,080	1.5	3
$235,000	34	2,576	3	5
$166,000	26	1,508	1.5	4
$153,100	35	1,672	1	4
$162,000	35	1,739	1.5	4
$224,000	40	3,074	2.5	7
$222,400	3	1,976	2.5	3
$199,000	37	2,302	2.5	4
$166,000	13	1,480	2	3
$149,900	11	960	2	2
$152,000	16	1,582	1.5	3
$162,500	154	1,600	1	4
$274,900	5	2,320	2.5	4
$100,000	14	1,034	1.5	2
$215,000	19	1,488	1.5	3
$124,000	17	1,056	1	3
$125,000	128	864	1	3
$138,000	19	1,552	2	3
$225,000	11	1,816	1.5	3
$180,000	20	1,530	2	3
$189,900	14	1,756	2	4
$435,000	25	4,211	3.5	5
$120,000	10	2,206	2.5	3
$163,000	64	1,092	1	2
$131,000	114	1,594	1	7
$126,500	15	1,480	2.5	3
$122,500	15	1,480	1.5	3
$425,000	88	3,003	3.5	4
$225,000	54	2,164	1.5	2
$209,000	19	1,519	1	2
$189,100	15	1,604	2.5	3
$285,000	25	1,400	2	3
$266,600	12	1,752	1	4
$80,000	32	880	1.5	2
$225,000	14	1,240	2	3
$159,000	17	1,514	1.5	3
$119,900	2	840	1	1
$130,900	1	840	1	2
$194,670	124	2,592	1.5	4
$72,000	121	1,010	1	3
$144,700	2	1,380	1.5	3
$139,500	3	1,366	1.5	3
$319,000	5	1,681	2.5	3
$348,000	14	2,037	2	3
$189,900	16	2,570	1.5	3
$20,000	59	936	1	2
$60,000	13	960	1.5	2
$179,500	11	1,352	1.5	3
$133,300	118	1,060	1	4
$153,000	6	1,508	2	3
$111,900	54	1,272	1.5	4
$187,000	18	2,389	3	6
$158,500	17	1,210	1	2
$153,000	52	1,230	1	3
$190,000	47	1,832	2	4
$242,000	27	1,854	1.5	3
$234,500	164	2,268	2.5	3
$225,000	29	1,807	1.5	3
$165,000	48	1,272	1.5	4
$129,900	12	1,560	1	3
$315,000	15	1,863	3.5	3
$129,900	64	1,120	1	2
$257,000	15	1,832	2.5	2
$324,000	0	2,092	2.5	4
$520,000	13	2,702	2.5	3
$150,414	32	1,040	1.5	3
$290,000	13	1,758	2.5	2
$112,000	116	2,326	2	3
$185,000	13	2,340	1.5	3
$295,000	1	2,058	2.5	3
$290,000	33	944	1	1
$79,900	44	640	1	2
$256,000	6	2,353	2.5	4
$245,000	7	2,038	2.5	4
$140,000	32	1,469	1.5	4
$272,000	10	2,219	2	3
$164,000	16	1,774	2	4
$182,500	51	1,296	2	4
$219,900	124	2,289	1.5	4
$325,000	134	2,463	2.5	5
$352,000	2	3,126	2.5	4
$315,000	15	2,550	2.5	3
$154,000	49	1,182	1	2
$199,000	48	1,890	2	4
$202,000	12	1,944	2.5	3
$292,000	6	2,815	2.5	4
$116,600	11	1,040	2	3
$155,000	25	1,638	2	4
$215,000	13	2,206	2.5	4
$373,490	0	3,170	3.5	4
$259,142	0	2,328	2.5	4
$293,565	0	2,737	3	4
$285,558	0	2,879	3	4
$273,960	1	2,158	2	3
$185,000	11	1,336	2	3
$190,000	4	1,594	2.5	3
$154,000	29	1,456	2	3
$133,000	29	1,320	3	3
$285,000	14	2,076	2.5	4
$138,000	22	1,326	2	3
$303,000	20	2,240	2.5	4
$250,000	19	2,100	3	4
$167,500	27	1,129	1	2
$190,000	19	2,296	2.5	4
$182,500	20	1,475	2	3
$107,000	20	1,268	1	3
$195,000	15	1,816	2	3
$169,000	30	1,632	2.5	4
$156,000	11	1,254	1.5	2
$120,000	30	1,272	1	3
$170,000	29	1,604	1.5	4
$249,835	0	2,474	2.5	4
$188,095	0	2,057	2.5	3
$176,450	6	1,852	2.5	3
$322,277	1	2,242	3	3
$149,000	32	1,564	1.5	4
$95,000	24	960	1	3
$198,500	63	1,680	2.5	2
$185,000	3	1,428	2.5	2
$168,900	0	1,672	2.5	3
$220,000	29	2,284	1.5	3
$129,900	31	1,286	1	3
$167,000	53	1,250	1	3
$330,000	113	1,896	1.5	4
$336,000	1	2,592	3	3
$512,971	0	1,904	2	2
$229,000	3	1,680	2	3