MAT 240 Module Two Assignment

Selling Price and Area Analysis for D.M. Pan National Real Estate Company 1 Report: Selling Price and Area Analysis for D.M. Pan National Real Estate Company Karen Morrow Southern New Hampshire University MAT 240: Applied Statistics Instructor Jennifer Turner November 6, 2022

Selling Price Analysis for D.M. Pan National Real Estate Company 2 Introduction The real estate industry acquires data to provide an intuitive analysis of how it can have an advantage over its competition. Linear regression is heavily relied on by the industry to estimate home prices. To predict the business environment and provide the best advice to their clients, real estate businesses must be well versed in the relationship between price, square footage, build year, location, and other factors. The sales team at D.M. Pan Real Estate Company has requested a report that examines the relationship between the selling price of properties and their size in square feet. The team has asked to be provided with an initial analysis of a select region. Representative Data Sample Charted below is a simple random sample of 30 for the Northeast Region using real estate county data for 2019. State County listing price $'s per square foot square feet random ny jefferson 287,800 $191 1,504 0.409664 sample national pa lebanon 377,800 $201 1,881 0.189728 mean price $301,576 342,365 pa cumberland 270,900 $186 1,456 0.446753 median price $297,400 318,000 ny kings 247,900 $189 1,310 0.405313 Std dev price 76651.2 125,914 ny madison 311,800 $158 1,973 0.461212 pa northumberland 301,600 $163 1,852 0.401774 ny ulster 228,600 $162 1,407 0.592642 sample national pa luzerne 386,500 $186 2,077 0.166121 mean sqft 1,704 2,111 ny warren 236,500 $205 1,156 0.038873 median sqft 1,574 1,881 pa lehigh 305,800 $194 1,579 0.994204 std dev sqft 586.85 921 ny clinton 351,500 $179 1,969 0.744781 ny tioga 257,400 $218 1,183 0.566768 ny albany 297,400 $207 1,439 0.828021 ny washington 257,300 $203 1,265 0.812822 pa clearfield 257,900 $170 1,517 0.205508 ny herkimer 306,900 $171 1,797 0.160513 pa pike 256,400 $168 1,529 0.320317 pa centre 626,500 $144 4,354 0.923987 ny saratoga 304,600 $157 1,946 0.899651 pa beaver 315,300 $157 2,010 0.827777 ny rockland 302,300 $165 1,835 0.203498 pa centre 290,200 $184 1,574 0.669911 ny orange 329,300 $168 1,963 0.1019 pa adams 247,000 $158 1,566 0.286766 pa allegheny 224,200 $196 1,145 0.048239 ny rensselaer 347,000 $190 1,827 0.885504 pa bucks 325,800 $182 1,794 0.135472 pa berks 207,400 $173 1,199 0.92321 pa northampton 286,100 $218 1,313 0.183521

Selling Price Analysis for D.M. Pan National Real Estate Company 4 most useful as it determines the listing price. The higher the home’s square footage, the higher the listing price. The association between square feet (x) and listing price (y) is that as the number of square feet increases so does the listing price. The scatterplot reveals a trend line that shows a linear relationship between square feet and listing price with a positive correlation between the two variables. The graph does show an outlier with a much larger number of square feet over 4,000 and a listing price of over $600,000. Most houses in the northeast region have a square footage of 1,145 to 2,045 but there are a small number of homes that are larger in their square footage. Because there are much fewer homes with higher square footage such as the outlier, the likelihood of those homes getting picked in a random sample is lower. This graph shows the frequency of square feet.

Selling Price Analysis for D.M. Pan National Real Estate Company 5 This graph shows the frequency for listing price. Using the regression equation y = 124.08x + 90127 from the scatterplot, an 1,800 square foot house would list at $313,471. The variable y represents the listing price, and the variable x represents the square feet. To find the listing price of the home, the x in the equation is replaced by 1,800 and then solved for y giving the listing price of the home.