Linear Regression Analysis of Dwelling Price vs Surface
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Themes
Linear regression, real estate market analysis, dwelling price, surface area, covariance, correlation coefficient, regression line
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Abstract
This document provides a step-by-step guide to analyzing the relationship between dwelling sale price and surface area using linear regression.
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[...] The average surface of dwellings is approximately The average price of housing is Calculation of variances and standard deviations 2. Calcul de la covariance 3. Calculation of coefficients for linear regression So equation of the regression line 4. Interpretation Each additional square meter costs approximately ?13.24 The theoretical price of an apartment with a surface area of 0m² is -18?. Which is coherent because close to 5. 0,96628693 The correlation coefficient is very close to . The linear model is therefore very reliable 6. [...]
[...] The objective will be to study the relationship that exists between the price of the apartment and its surface. We want to study the relationship between the sale price as a function of the surface of the dwelling Calculate the means, variances, and standard deviations of the variables Calculate the covariance Calculate the parameters and of the model Y=aX+b Interpret the values obtained from the parameters and of the model Calculate the linear correlation coefficient. Comment on the result obtained. [...]
