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The website Zillow recently sponsored a contest with a prize over $1 million to whoever could come up with a method that would reliably predict
The website Zillow recently sponsored a contest with a prize over $1 million to whoever could come up with a method that would reliably predict the selling price of a home in the United States. Zillow was using a method based on regression in which many variables were used to develop an equation predicting the actual selling price of homes listed on the site. The old method was producing median estimates that were consistently within 5% of the actual selling price, but Zillow customers were not satisfied. Get more information on the "Zestimates". In this assignment, we are going to simplify the Zillow problem by focusing on a relatively small geographic area in Saratoga County, New York and on a small group of variables. The data in the M3 Data file is actual data gathered from public records a few years ago. In 2007, the National Association of Realtors said their survey showed that home buyers were willing to pay about $1,220 more for a house with a fireplace but having a fireplace could boost the value of a home by $12,000 in some locations. In 2016, an Angie's list survey found that having a fireplace could add about 12%
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