Assignment
Determinants of Residential Property value in Las Vegas (Use the data File: Home)
The Greater Las Vegas Association of Realtors® (GLVAR) is interested in analyzing the determinants of residential property values in the Las Vegas (NV) housing market. The data set is based on the residential properties of the city of Las Vegas. Residential property values (PRICE) are explained by a number of factors. The relationship between price and these factors is written as:
PRICE =f(SQFT, BED, BATH, AGE, POOL)
PRICE = Sale price of a residential property
SQFT = Square feet, measured in size of living space
BED = Number of bedrooms
BATH = Number of bathrooms
AGE = Year of the residential property
POOL = 1 if the property has a pool or a spa and 0 if not.
Part I: Characteristics of residential properties
1. Construct a table (Table 1) that includes the summary statistics (mean, standard deviation, minimum and maximum) of all the variables. Explain briefly your findings.
2. Compute the matrix of correlation coefficients (Table 2) for the variables PRICE, SQFT, BED, BATH, AGE, POOL. Analyze the direction and strength of the relationship of the right-hand side variables (SQFT, BED, BATH, AGE, AGE, POOL) on PRICE.
3. Show the scatter plots of the relationships between (i) PRICE and SQFT, (ii) PRICE and BED, (iii) PRICE and BATH, (iii) PRICE and AGE (Use PRICE as the variable on the vertical axis in each plot). Explain your findings. Are the results of the plots consistent with the correlation results in (2)? Explain.
Part II: Comparing value of home with and without swimming pool
Is there a difference in values between residential properties with and without swimming pool or spas? Compute the average difference in values of the two types of properties. Explain your findings. Are your findings consistent with intuition? Explain (Use Table 3 to report your findings).
Table 3: Descriptive Statistics (Average Values)
Variables Home with Pool Home without Pool Difference
PRICE
SQFT
BED
BATH
AGE
Attachment:- Attachments.rar