Statistical Model
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The purpose of this analysis was to develop a regression model to predict the sales price of homes in Clark and Floyd counties in Indiana. The data set, which consists of 50 homes, was collected by researchers at the Southern Indiana Board of Realtors in a study of whether the county the home is located contributes to the sales price of the home. The following data was found to be the key drivers in the model:
"X The sales price of the home.
"X The county in which the home is located.
"X The number of rooms in each home.
"X The age of the home.
"X The square footage of the home.
A stepwise regression model was run on the original data set to check for insignificant variables. The variable representing the number of rooms in the home was removed because it was it was shown to not be a significant contributor to the model. Thus, we can conclude that the number of rooms in each home is not a significant measure of the price of a home in Clark or Floyd County in Indiana as compared to the age of the home, the county of location, or the square footage of the home...