PART I:
Real Estates Sales:
The Association of Real Estate Agents for Foreign Properties (AREAFP) is a local body representing agents who promote sales of foreign properties in Singapore. The objectives of AREAFP are to promote and protect the interests of estate agents, as well as to protect the interests of members of the public who engage the services of estate agents for the purchase of foreign properties.
With the sharp decline in property prices in the US, AREAFP noted its members' feedback that there is an increase in interest in US properties. With this in mind, Mr Peter Tan, the Executive Director of AREAFP, would like to publish an article on the association's monthly magazine regarding the sales prices of US properties. In particular, he wishes to identify some key factors that would affect the prices of properties in the US.
Incidentally, Mr Tan has a good friend who is a real estate agent in the US. From this friend, Mr Tan managed to obtain some recent sales records of properties within a certain town. Mr Tan has engaged your service to conduct a relevant statistical analysis and offer some insights into possible key factors that affect the prices of properties in the US besides location.
The attached data set includes the following variables:
• Price: Price of property (US'000)
• Bedrooms: Number of bedrooms
• Size: Size of property (square-feet)
• Distance: Distance from town centre (miles)
• Baths: Number of bathrooms
• Pool: Whether the property has a swimming pool
Question 1: Organize and present the data by generating scatter diagrams. Use these diagrams to identify if there are linear relationships between the dependent variable ‘Price' and independent variables "Bedrooms", "Size" and "Distance". Write a short comment for each of the diagrams.
Question 2: To gain a better insight into the price of properties in the US, fit a multiple regression using ‘Price' as the dependent variable ‘Price'. Your submission should include the following:
- Relevant SPSS output
- General Multiple Regression Equation and its interpretation
- Interpretation of the coefficient of determination
- Global test (or F-test)
- Use of hypothesis tests to determine significance of individual regression coefficients
Question 3:
Based on the analysis of the regression model in Question 2, and by making reference to the assumptions of the model where appropriate, discuss your observations and highlight three (3) possible statistical concerns. Keep your answer to within 300 to 400 words (indicate your word count).
Question 4: In about 300 words, describe your findings in an executive summary for Mr Peter Tan.
PART II:
Question 5:
a) In about 250 words, describe how linear regression analysis could be used in your organisation or any organisation that you are familiar with.
b) Log in to the SIM University Library e-Resources Online Databases: Economic Intelligence Unit (EIU) Country Report. Retrieve the February 2012 Singapore report and refer to the Data and charts - Annual data and forecast. Analyse section. In about 200 words, comment on the Singapore GDP and expenditure on GDP from 2007 to 2013.