(solution) You currently own a house in Brooklyn, NewYork, and are planning

(solution) You currently own a house in Brooklyn, NewYork, and are planning

You currently own a house in Brooklyn, NewYork, and are planning on moving sometime in the next year to Brig Switzerland. A friend of yours has suggested that you try to sell the house on your own. The decision is a difficult one. Real estate commissions can be quite hefty, but brokers bring a great deal of expertise to the process of selling a house, particularly the ability to set a reasonable asking price. Real estate professionals can quantify a variety of unobservable or un-measurable characteristics of a house, such as that shiny purple wallpaper in the upstairs bathroom and the overall desirability of the neighborhood. To get an initial feel for the types of houses in your area, you have collected data that contain information such as the selling price of the house, square feet, numbers of bedrooms and bathrooms, and the presence of a fireplace for 108 homes sold in your neighborhood last year. In the attached Excel data set named House, SQ_FT is the variable measuring the total square feet in the house. BEDS and BATHS are number of bedrooms and bathrooms, respectively. For HEAT, Gas represents gas forced air heating and Electric represents electric heat. STYLE is the architectural style of the home: zero indicates a tri-level, one indicates a two-story house and two indicates that the house is a ranch-styled home. GARAGE is the number of cars that can fit into the garage. We don’t know whether it is an attached garage. AGE is the age of the home in years. FIRE and BASEMENT indicate the presence (one) or absence (zero) of at least one fireplace or basement. PRICE is the selling price of the house in thousands of dollars and SCHOOL is the school district (S for the South school district; N for the North school district). All else the same, the North school district is viewed as the preferred school district. a. Use these data to uncover the important predictors of selling prices of houses in your neighborhood and describe, specific to this problem, how these predictors are related to the selling price. b. Provide an estimated selling price of your own house. (You need to come up with your own specification of your house for this.) c. Justify why the relationship that you uncover is appropriate for the data.
PRICE
SQ_FT
BEDS
139.9
1238
144
1707
146.5
1296
146.5
1320
146.9
1210
148
1296
148.5
1765
149
1725
150.95
1794
151
1294
152.692
1372
152.801
1162
155.207
1996
156
1764
156
1416
157.5
1730
159.9
1392
159.9
1664
161
1332
162.8
1752
164.9
2167
165
1664
166
1973
169.28
1384
169.9
1431
170
1950
172
1452
172.439
1829
174.646
1652
177.293
1516
178.1
1998
178.149
1984
185
1840
190
1823
191.9
2150
193
2096
204
2212
213
2375
275
2809
139
912
141.5
816
143.5
1008
146.95
912
148
1008
148.694
838
149
1008
150.452
1120
155
1242
156.9
912
163
1316
168
1490
168.879
1118
169.347
1278
169.7
1490
170
1418
170.8
1250
171.5
1881
175
1355
178
1518
179.5
1606
187
2124
193.75
2099
205
2232
212
1608
156
1320
159.9
1680
159.9
1434
165
1664
167.158
1379
167.2
1634
171.5
1400
171.5
1664
172.5
1548
173.5
2040
174
1792
176.7
1865
177.4
1833
178.5
1627
179
2198
179
1707
182.4
2096
184
2004
187
1818
187.9
1935
189
2381
190
1977
190.5
2317
192
2072
192.9
2108 BATHS
3
3
4
3
3
3
3
4
4
3
3
3
4
4
3
4
3
3
3
3
3
3
4
3
3
5
3
3
4
3
4
4
3
4
5
3
4
4
4
4
3
5
4
5
4
4
3
4
4
3
3
4
3
3
4
4
4
3
3
4
3
4
5
5
3
3
3
3
3
3
3
4
3
4
4
3
3
3
4
3
3
4
4
3
3
3
5
4
3 HEAT
2 Gas
2 Electric
2 Gas
2 Gas
2 Gas
2 Gas
2 Gas
3 Gas
2 Gas
2 Gas
2 Gas
2 Gas
2 Gas
2 Electric
2 Gas
2 Gas
2 Gas
3 Gas
2 Gas
3 Gas
3 Electric
2 Gas
3 Gas
2 Gas
2 Gas
3 Gas
2 Gas
2 Gas
3 Gas
2 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas
2 Gas
2 Gas
2 Gas
2 Gas
2 Gas
2 Gas
3 Gas
2 Gas
3 Gas
2 Gas
2 Gas
2 Gas
3 Gas
2 Gas
2 Gas
2 Gas
3 Gas
3 Gas
2 Gas
2 Gas
3 Gas
2 Gas
3 Gas
3 Gas
3 Gas
2 Gas
3 Gas
3 Gas
2 Gas
2 Gas
3 Gas
3 Gas
4 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas STYLE GARAGE
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2 BASEMENTAGE
1
1
2
0
2
1
2
1
1
0
2
1
2
1
2
1
2
1
2
0
2
1
1
0
2
0
2
1
2
0
2
0
2
1
2
0
2
1
2
0
2
1
2
0
2
0
2
0
2
1
2
0
2
1
2
0
2
1
2
1
2
1
2
1
2
1
2
1
2
1
2
1
3
1
2
1
3
1
2
1
2
1
2
1
2
1
2
1
1
1
2
1
2
1
2
1
2
1
2
1
2
1
2
1
2
1
2
1
2
1
2
1
2
1
2
1
2
1
2
1
2
1
2
1
2
1
3
1
2
1
2
0
2
1
2
1
2
1
2
1
2
0
2
1
2
1
2
1
2
1
2
1
2
1
2
1
2
1
2
1
2
1
2
1
2
1
2
1
2
0
2
1
2
1
2
1
2
1 FIRE
12
13
17
11
6
17
20
12
18
13
9
8
13
13
8
15
8
11
14
18
13
9
13
5
7
13
4
10
7
10
17
9
9
3
12
9
17
11
6
19
19
17
16
17
11
19
11
12
18
8
13
16
11
10
14
17
9
7
22
13
14
13
9
13
13
7
12
7
8
10
1
16
8
15
9
12
7
3
12
12
7
13
19
11
17
9
9
11
7 SCHOOL
1S
1N
0N
1N
1N
1N
0N
0N
0N
1N
0S
1N
1S
1N
0S
1N
1S
1N
0S
1N
1N
1N
1N
1N
1S
1N
1N
1S
1S
1S
1S
1N
1N
1S
1N
1S
1S
1S
1N
1N
0N
0N
1S
1N
0S
1N
1S
0N
1S
1N
1N
1S
1N
1S
1S
1S
1S
1S
0S
1N
1N
1S
1S
1S
1S
1S
1S
1S
1S
1S
1S
1S
1S
1N
1S
1N
1S
1S
1N
1N
1S
1N
1S
1S
1S
1S
1S
1S
1N 193.6
194.5
194.7
195
201
201
205
208
210
211
212
212.5
212.5
224.5
230.577
233.8
235
236.9
272 2060
2064
2148
2170
1984
2130
2049
2035
2264
2264
2362
2262
2353
2298
2282
2542
2380
2505
2804 4
3
5
6
4
4
4
3
3
3
4
5
4
3
4
4
4
4
4 4 Gas
3 Gas
4 Gas
4 Gas
3 Electric
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas
3 Gas 2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2 2
2
2
2
2
2
2
3
3
3
2
2
2
3
2
2
2
2
3 1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1 9
5
8
21
11
20
19
6
7
10
6
12
5
2
9
6
6
7
1 1S
1S
1S
1S
1S
1S
1S
1S
1S
1S
1N
1S
1N
1S
1S
1S
1S
1S
1S SIZE PRICE
1238
139.9
1707
144
1296
146.5
1320
146.5
1210
146.9
1296
148
1765
148.5
1725
149
1794
150.95
1294
151
1372 152.692
1162 152.801
1996 155.207
1764
156
1416
156
1730
157.5
1392
159.9
1664
159.9
1332
161
1752
162.8
2167
164.9
1664
165
1973
166
1384
169.28
1431
169.9
1950
170
1452
172
1829 172.439
1652 174.646
1516 177.293
1998
178.1
1984 178.149
1840
185
1823
190
2150
191.9
2096
193
2212
204
2375
213
2809
275
912
139
816
141.5
1008
143.5
912
146.95
1008
148
838 148.694
1008
149
1120 150.452
1242
155
912
156.9
1316
163
1490
168
1118 168.879
1278 169.347
1490
169.7
1418
170
1250
170.8
1881
171.5
1355
175
1518
178
1606
179.5
2124
187
2099
193.75
2232
205
1608
212
1320
156
1680
159.9
1434
159.9
1664
165
1379 167.158
1634
167.2
1400
171.5
1664
171.5
1548
172.5
2040
173.5
1792
174
1865
176.7
1833
177.4
1627
178.5
2198
179
1707
179
2096
182.4
2004
184
1818
187
1935
187.9
2381
189
1977
190
2317
190.5
2072
192
2108
192.9 PRICE
300
250
200
PRICE
150
100
50
0
500 1000 1500 2000 2500 3000 2060
2064
2148
2170
1984
2130
2049
2035
2264
2264
2362
2262
2353
2298
2282
2542
2380
2505
2804 193.6
194.5
194.7
195
201
201
205
208
210
211
212
212.5
212.5
224.5
230.577
233.8
235
236.9
272