id Price ($ thousands) SqFt Baths Bedrooms Garage Age of Property Lot Size Property Condition Basement Outdoor Amenities School Quality Crime Rate Proximity to Amenities Transportation Accessibility Property Tax Rate 153000 920 1 0 33 3280 Poor Yes None 1.83 3.5 No 1.86 2 163150 750 1 2 о 38 2772 Poor No None 9 2.34 3.9 Yes 1.04 3 164900 900 1 2 0 13 3530 Excellent Yes None 6 2.98 3.9 No 2.11 4 170175 1500 1 2 о 31 5561 Fair Yes Deck 7 2.49 4.8 No 1.84 5 176900 1030 2 2 0 47 3247 Excellent No None 3 2.82 4.3 No 1.96 G 187700 1090 1 2 0 36 3898 Poor No Garden 8 2.68 4 No 1.5 7 295000 1280 2 2 1 45 4617 Excellent Yes None 9 2.66 5 No 2.22 8 251650 1355 1 2 1 24 4674 Good No Garden 8 2.69 3.81 No 2.32 9 472990 1690 3 3 1 15 6315 Fair Yes Deck 8 1.2 4 No 1.5 10 473000 1765 3 3 1 29 6944 Fair Yes Deck 9 1.74 4.2 Not 1.88 11 773650 2780 3.5 4 2 8 10913 Fair Yes Deck 8 1 1.6 No 1.63 12 674000 1910 3 3 2 5 6591 Poar Yes Garden 6 1 2.8 No 1.95 13 885000 1920 4 4 2 29 5977 Fair No Deck 7 1 1.8 No 2.19 14 780000 1930 4 4 2 47 7691 Good Yes Garden 8 1 2.1 Yes 2.3 15 385900 950 1.5 3 1 4 3647 Poor Yes Deck 6 1.94 4 No 1.34 16 284650 850 1 2 1 12 2656 Fair No None 5 1.94 3.7 No 1.09 17 189500 950 2 1 0 45 3725 Fair No None 7 2.93 4.1 Yes 1.93 18 392800 1025 2 2 1 2 3967 Excellent No Garden 6 1.65 3.6 No 1.66 19 299600 1560 15 2 1 27 5489 Excellent No Pool 7 1.77 3.8 Yes 1.97 20 115350 980 1.5 1 0 31 3519 Fair No Deck 7 3.06 4 Yes 1.19 21 120170 750 15 1 0 36 2549 Good No None 6 1.9 5 No 1.63 22 164900 840 1 1 0 35 2566 Poor No None 6 2.7 5 Yes 1.5 23 574900 2180 25 3 1 26 7271 Good Yes Garden 6 1 3.3 No 2.27 24 970000 3400 3.5 4 3 43 12930 Fair Yes Garden 9 1 1.6 Not 2.94 25 810000 2790 3 4 2 27 8383 Good Yes Garden 8 1 1.9 No 2.79 26 840000 2860 3 4 2 5 9534 Excellent No Deck 9 1 1.8 Yes 2.8 27 185500 1350 1 1 0 20 4588 Good Yes None 6 2.59 5 Yes 2.02 28 289600 1100 15 2 0 11 3891 Fair No Pool 6 1.07 4.5 No 1.93 29 389800 1250 2 3 1 10 4900 Fair Yes None 8 1.38 3.3 No 2.29 30 689500 1870 3 3 1 40 6258 Good Yes Garden 9 1.22 2.8 No 1.9 31 889100 2850 3.5 4 2 38 9539 Good Yes Garden 7 1 1.9 Yes 2.15 32 283700 985 15 2 о 6 3681 Good No None 6 2.2 4.3 No 1.09 33 160450 980 1 1 0 8 3383 Poor Yes None 8 1.79 4.7 No 2.08 34 195989 1100 1.5 1 0 23 3547 Fair No Garden 8 2.64 4.9 No 1.12 35 999900 3250 4 4 2 47 11220 Good No Garden 8 1 1.2 Yes 2.21 36 225340 1150 2 2 0 26 3612 Good No None 7 2.27 4.3 No 1.22 37 125750 950 1.5 1 0 46 3018 Good No Deck 6 3.19 3.7 No 2.14 38 124700 890 2 0 43 3114 Fair No None 3 2.24 4 No 2.18 39 200500 1200 2 2 1 12 4103 Fair Yes Deck 9 2.08 4.8 Yes 1.72 40 128500 980 1 1 0 26 3837 Poor Yes None 8 1.33 4.1 No 2.1 41 174360 1100 15 1 1 13 3699 Excellent No Garden 7 2.88 4 No 1.37 42 179800 1210 2 1 0 40 4333 Poor Yes Deck 7 2.56 4.4 Yes 2.15 43 205450 1350 25 2 1 18 4904 Fair Yes Garden 7 1.47 4.7 No 1.69 44 779800 2600 3 4 2 25 7834 Excellent Yes Garden 9 1 1.9 No 1.99 45 128800 985 15 1 0 33 3609 Fair No None 8 2.13 2.8 Yes 1.11 46 522200 2345 3 3 1 47 7452 Fair No Pool 6 1.66 2.8 Yes 1.77 47 1173200 3250 3.5 2 40 12873 Poor No Deck 9 1 1.7 No 1.59 48 1824200 3875 4 5 3 43 12201 Good Yes Garden 8 1 1 Yes 2.91 49 2475200 4560 5 6 3 12 15571 Good No Garden 8 1 1 No 3.78 50 3126200 5870 5.5 7 4 44 18111 Fair Yes Pool 9 1 1 No 2

id Price ($ thousands) SqFt Baths Bedrooms Garage Age of Property Lot Size Property Condition Basement Outdoor Amenities School Quality Crime Rate Proximity to Amenities Transportation Accessibility Property Tax Rate 153000 920 1 0 33 3280 Poor Yes None 1.83 3.5 No 1.86 2 163150 750 1 2 о 38 2772 Poor No None 9 2.34 3.9 Yes 1.04 3 164900 900 1 2 0 13 3530 Excellent Yes None 6 2.98 3.9 No 2.11 4 170175 1500 1 2 о 31 5561 Fair Yes Deck 7 2.49 4.8 No 1.84 5 176900 1030 2 2 0 47 3247 Excellent No None 3 2.82 4.3 No 1.96 G 187700 1090 1 2 0 36 3898 Poor No Garden 8 2.68 4 No 1.5 7 295000 1280 2 2 1 45 4617 Excellent Yes None 9 2.66 5 No 2.22 8 251650 1355 1 2 1 24 4674 Good No Garden 8 2.69 3.81 No 2.32 9 472990 1690 3 3 1 15 6315 Fair Yes Deck 8 1.2 4 No 1.5 10 473000 1765 3 3 1 29 6944 Fair Yes Deck 9 1.74 4.2 Not 1.88 11 773650 2780 3.5 4 2 8 10913 Fair Yes Deck 8 1 1.6 No 1.63 12 674000 1910 3 3 2 5 6591 Poar Yes Garden 6 1 2.8 No 1.95 13 885000 1920 4 4 2 29 5977 Fair No Deck 7 1 1.8 No 2.19 14 780000 1930 4 4 2 47 7691 Good Yes Garden 8 1 2.1 Yes 2.3 15 385900 950 1.5 3 1 4 3647 Poor Yes Deck 6 1.94 4 No 1.34 16 284650 850 1 2 1 12 2656 Fair No None 5 1.94 3.7 No 1.09 17 189500 950 2 1 0 45 3725 Fair No None 7 2.93 4.1 Yes 1.93 18 392800 1025 2 2 1 2 3967 Excellent No Garden 6 1.65 3.6 No 1.66 19 299600 1560 15 2 1 27 5489 Excellent No Pool 7 1.77 3.8 Yes 1.97 20 115350 980 1.5 1 0 31 3519 Fair No Deck 7 3.06 4 Yes 1.19 21 120170 750 15 1 0 36 2549 Good No None 6 1.9 5 No 1.63 22 164900 840 1 1 0 35 2566 Poor No None 6 2.7 5 Yes 1.5 23 574900 2180 25 3 1 26 7271 Good Yes Garden 6 1 3.3 No 2.27 24 970000 3400 3.5 4 3 43 12930 Fair Yes Garden 9 1 1.6 Not 2.94 25 810000 2790 3 4 2 27 8383 Good Yes Garden 8 1 1.9 No 2.79 26 840000 2860 3 4 2 5 9534 Excellent No Deck 9 1 1.8 Yes 2.8 27 185500 1350 1 1 0 20 4588 Good Yes None 6 2.59 5 Yes 2.02 28 289600 1100 15 2 0 11 3891 Fair No Pool 6 1.07 4.5 No 1.93 29 389800 1250 2 3 1 10 4900 Fair Yes None 8 1.38 3.3 No 2.29 30 689500 1870 3 3 1 40 6258 Good Yes Garden 9 1.22 2.8 No 1.9 31 889100 2850 3.5 4 2 38 9539 Good Yes Garden 7 1 1.9 Yes 2.15 32 283700 985 15 2 о 6 3681 Good No None 6 2.2 4.3 No 1.09 33 160450 980 1 1 0 8 3383 Poor Yes None 8 1.79 4.7 No 2.08 34 195989 1100 1.5 1 0 23 3547 Fair No Garden 8 2.64 4.9 No 1.12 35 999900 3250 4 4 2 47 11220 Good No Garden 8 1 1.2 Yes 2.21 36 225340 1150 2 2 0 26 3612 Good No None 7 2.27 4.3 No 1.22 37 125750 950 1.5 1 0 46 3018 Good No Deck 6 3.19 3.7 No 2.14 38 124700 890 2 0 43 3114 Fair No None 3 2.24 4 No 2.18 39 200500 1200 2 2 1 12 4103 Fair Yes Deck 9 2.08 4.8 Yes 1.72 40 128500 980 1 1 0 26 3837 Poor Yes None 8 1.33 4.1 No 2.1 41 174360 1100 15 1 1 13 3699 Excellent No Garden 7 2.88 4 No 1.37 42 179800 1210 2 1 0 40 4333 Poor Yes Deck 7 2.56 4.4 Yes 2.15 43 205450 1350 25 2 1 18 4904 Fair Yes Garden 7 1.47 4.7 No 1.69 44 779800 2600 3 4 2 25 7834 Excellent Yes Garden 9 1 1.9 No 1.99 45 128800 985 15 1 0 33 3609 Fair No None 8 2.13 2.8 Yes 1.11 46 522200 2345 3 3 1 47 7452 Fair No Pool 6 1.66 2.8 Yes 1.77 47 1173200 3250 3.5 2 40 12873 Poor No Deck 9 1 1.7 No 1.59 48 1824200 3875 4 5 3 43 12201 Good Yes Garden 8 1 1 Yes 2.91 49 2475200 4560 5 6 3 12 15571 Good No Garden 8 1 1 No 3.78 50 3126200 5870 5.5 7 4 44 18111 Fair Yes Pool 9 1 1 No 2

Database Systems: Design, Implementation, & Management

12th Edition

ISBN:9781305627482

Author:Carlos Coronel, Steven Morris

Publisher:Carlos Coronel, Steven Morris

Chapter4: Entity Relationship (er) Modeling

Section: Chapter Questions

Problem 10P

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Related questions

Question

Questions for Real Estate Case Study-Model Building

As preliminary analysis the dataset includes information on 50 homes currently for sale, but some homes have unusually high prices, square footage, and lot sizes. To refine the dataset for analysis, apply the following exclusion criteria:

Exclude any home with a price greater than $1,000,000.

Exclude any home with square footage (SqFt) greater than 3000 ft².

Exclude any home with a lot size greater than 10,000 ft².

After performing these exclusions, how many homes remain in the dataset?

1) Show the observations that excluded (2p)

2) How many categorical variables are present in the dataset? How will you incorporate these categorical variables into the regression analysis? (3p)

3) Create indicator (dummy) variables for each categorical variable to identify each categorical variable and convert into a binary variable (0 or 1). Here’s a guide based on categorical variables:

Property Condition: Categories "Poor" and "Fair" will be grouped together. If the property condition is "Poor" or "Fair," the indicator variable will be encoded as 0. If the property condition is "Good" and "Excellent", the indicator variable will be grouped together and encoded as 1.

Basement: If the home has a basement, it will be encoded as 1; otherwise, it will be recoded as 0. Categories include "Yes" (recoded as 1) and "No" (recoded as 0).

Outdoor Amenities: You will create two groups: one for "Garden" and "Deck" together, and one for "Pool." "None" will serve as the baseline category.

If the home has a garden or deck, the indicator variable will be encoded as 1 in a new variable; otherwise, it will be recoded as 0. If the home has a pool, the indicator variable will be encoded as 1 in a separate variable; otherwise, it will be encoded as 0.

Transportation Accessibility: If transportation is accessible, it will be encoded as 1 (Yes); if not, it will be encoded as 0 (No).

As preliminary analysis conduct a simple linear regression analysis for each independent variable associated with internal factors, using house price as the dependent variable. Make sure to use the indicator variables for the categorical data. (Significance level of α = 0.05). For each regression:

This analysis will provide insight into each variable’s predictive power and its contribution to the variability in house price, help determine which variables should be further investigated or potentially excluded from future modeling.

4) Report the p-value of the independent variable and indicate whether it is a significant predictor of house price (based on the p-value being less than 0.05). (4p)

5) Report the explained variability (R-squared value) for each variable, whether it is significant based on the p-value. (4p)

6) Identify and list any variables that are not significant predictors of house price (i.e., those with p-values greater than 0.05). (3p)

id
Price ($ thousands)
SqFt
Baths Bedrooms Garage Age of Property Lot Size Property Condition Basement
Outdoor Amenities School Quality Crime Rate Proximity to Amenities
Transportation Accessibility
Property Tax Rate
153000
920
1
0
33
3280
Poor
Yes
None
1.83
3.5
No
1.86
2
163150
750
1
2
о
38
2772
Poor
No
None
9
2.34
3.9
Yes
1.04
3
164900
900
1
2
0
13
3530
Excellent
Yes
None
6
2.98
3.9
No
2.11
4
170175
1500
1
2
о
31
5561
Fair
Yes
Deck
7
2.49
4.8
No
1.84
5
176900
1030
2
2
0
47
3247
Excellent
No
None
3
2.82
4.3
No
1.96
G
187700
1090
1
2
0
36
3898
Poor
No
Garden
8
2.68
4
No
1.5
7
295000
1280
2
2
1
45
4617
Excellent
Yes
None
9
2.66
5
No
2.22
8
251650
1355
1
2
1
24
4674
Good
No
Garden
8
2.69
3.81
No
2.32
9
472990
1690
3
3
1
15
6315
Fair
Yes
Deck
8
1.2
4
No
1.5
10
473000
1765
3
3
1
29
6944
Fair
Yes
Deck
9
1.74
4.2
Not
1.88
11
773650
2780
3.5
4
2
8
10913
Fair
Yes
Deck
8
1
1.6
No
1.63
12
674000
1910
3
3
2
5
6591
Poar
Yes
Garden
6
1
2.8
No
1.95
13
885000
1920
4
4
2
29
5977
Fair
No
Deck
7
1
1.8
No
2.19
14
780000
1930
4
4
2
47
7691
Good
Yes
Garden
8
1
2.1
Yes
2.3
15
385900
950
1.5
3
1
4
3647
Poor
Yes
Deck
6
1.94
4
No
1.34
16
284650
850
1
2
1
12
2656
Fair
No
None
5
1.94
3.7
No
1.09
17
189500
950
2
1
0
45
3725
Fair
No
None
7
2.93
4.1
Yes
1.93
18
392800
1025
2
2
1
2
3967
Excellent
No
Garden
6
1.65
3.6
No
1.66
19
299600
1560
15
2
1
27
5489
Excellent
No
Pool
7
1.77
3.8
Yes
1.97
20
115350
980
1.5
1
0
31
3519
Fair
No
Deck
7
3.06
4
Yes
1.19
21
120170
750
15
1
0
36
2549
Good
No
None
6
1.9
5
No
1.63
22
164900
840
1
1
0
35
2566
Poor
No
None
6
2.7
5
Yes
1.5
23
574900
2180
25
3
1
26
7271
Good
Yes
Garden
6
1
3.3
No
2.27
24
970000
3400
3.5
4
3
43
12930
Fair
Yes
Garden
9
1
1.6
Not
2.94
25
810000
2790
3
4
2
27
8383
Good
Yes
Garden
8
1
1.9
No
2.79
26
840000
2860
3
4
2
5
9534
Excellent
No
Deck
9
1
1.8
Yes
2.8
27
185500
1350
1
1
0
20
4588
Good
Yes
None
6
2.59
5
Yes
2.02
28
289600
1100
15
2
0
11
3891
Fair
No
Pool
6
1.07
4.5
No
1.93
29
389800
1250
2
3
1
10
4900
Fair
Yes
None
8
1.38
3.3
No
2.29
30
689500
1870
3
3
1
40
6258
Good
Yes
Garden
9
1.22
2.8
No
1.9
31
889100
2850
3.5
4
2
38
9539
Good
Yes
Garden
7
1
1.9
Yes
2.15
32
283700
985
15
2
о
6
3681
Good
No
None
6
2.2
4.3
No
1.09
33
160450
980
1
1
0
8
3383
Poor
Yes
None
8
1.79
4.7
No
2.08
34
195989
1100
1.5
1
0
23
3547
Fair
No
Garden
8
2.64
4.9
No
1.12
35
999900
3250
4
4
2
47
11220
Good
No
Garden
8
1
1.2
Yes
2.21
36
225340
1150
2
2
0
26
3612
Good
No
None
7
2.27
4.3
No
1.22
37
125750
950
1.5
1
0
46
3018
Good
No
Deck
6
3.19
3.7
No
2.14
38
124700
890
2
0
43
3114
Fair
No
None
3
2.24
4
No
2.18
39
200500
1200
2
2
1
12
4103
Fair
Yes
Deck
9
2.08
4.8
Yes
1.72
40
128500
980
1
1
0
26
3837
Poor
Yes
None
8
1.33
4.1
No
2.1
41
174360
1100
15
1
1
13
3699
Excellent
No
Garden
7
2.88
4
No
1.37
42
179800
1210
2
1
0
40
4333
Poor
Yes
Deck
7
2.56
4.4
Yes
2.15
43
205450
1350
25
2
1
18
4904
Fair
Yes
Garden
7
1.47
4.7
No
1.69
44
779800
2600
3
4
2
25
7834
Excellent
Yes
Garden
9
1
1.9
No
1.99
45
128800
985
15
1
0
33
3609
Fair
No
None
8
2.13
2.8
Yes
1.11
46
522200
2345
3
3
1
47
7452
Fair
No
Pool
6
1.66
2.8
Yes
1.77
47
1173200
3250
3.5
2
40
12873
Poor
No
Deck
9
1
1.7
No
1.59
48
1824200
3875
4
5
3
43
12201
Good
Yes
Garden
8
1
1
Yes
2.91
49
2475200
4560
5
6
3
12
15571
Good
No
Garden
8
1
1
No
3.78
50
3126200
5870
5.5
7
4
44
18111
Fair
Yes
Pool
9
1
1
No
2

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