You are consulting for a Buffalo, NY realty company. They provide a data set of 100 homes sold within the last year in a Buffalo, NY suburb. The variables included are:SalePrice: The price at which the houses sold, to the nearest $1000LotSize: The size of the lot, in acresHouseArea: The size of the house, in square feetGarage: Number of garage baysBasement: 0 = no basement, 1 = basementBasementArea: Size of basement (in square feet)FinishedBasement: 0 = unfinished, 1 = finishedRanch: 1 = Ranch-style house, 0 = not Ranch-styleNumBedrooms: Number of bedroomsNumBathrooms: Number of bathroomsMainFlooring: Main type of flooring in house (Carpet or Hard)Fence: Type of fence installed (No, Privacy, or Other)Corner: Is the house on a corner lot, Yes or NoMainRoad: Is the house on a main road, Yes or NoKitchen: Realtor's rating of kitchen: Great, Good, Average, Below Average, or PoorBathrooms: Realtor's rating of bathrooms: Great, Good, Average, Below Average, or PoorBuild a regression model to predict the SalePrice of the houses. (Hint: the best models I have seen previously have Adjusted-R2 a little over 0.65.) You should use methods from this week, and describe how you decided on the variables to include in your model.Explain why you do not need to use all given variables in your model. (Hint: consider multicollinearity.)Interpret a few of your parameter estimates. Do all of the parameter estimates make sense, or are there some that have unexpected values?Predict, along with 95% prediction intervals, the prices of the five houses at the bottom of the data set (houses 101-105). Are you concerned about the predictions for any of the houses?The following characteristics might be changed by homeowners: MainFlooring, Fence, Kitchen quality, and Bathroom quality. Explain which of these have an effect on the sale price of the house, and which do not. (Hint: use the adjusted-R2 shortcut, or if you are very ambitious, try partial F tests)Write a case report summarizing your findings.Upload your case report by Sunday night.https://docs.google.com/spreadsheets/d/1ercVXCw979XoeeIUtMN7fWe8Hu9t1Ua4/edit?usp=sharing&ouid=113065851922634849527&rtpof=true&sd=true
https://docs.google.com/document/d/1qgSK-iyzozpG81tmDZm_HFZPx5xkFGAO/edit?usp=sharing&ouid=113065851922634849527&rtpof=true&sd=true