## GBA 306 Statistical Methods of Business II – Case Study – Indiana Real Estate

## Statistics Case Study Assignment

Ann Perkins, a realtor in Brownsburg, Indiana, would like to use estimates from a multiple

regression model to help prospective sellers determine a reasonable asking price for their homes.

She believes that the following four factors influence the asking price (Price) of a house:

1) The square footage of the house (SQFT)

2) The number of bedrooms (Bed)

3) The number of bathrooms (Bath)

4) The lot size (LTSZ) in acres

She randomly collects online listings for 50 single-family homes. The data file is in the

Blackboard “Case Study Indiana Real Estate Data File Excel” within the Case Study folder.

Requirements and associated point values:

Part 1 – Provide summary statistics (with Excel Data Analysis) by calculating the mean and

standard deviation on the asking price, square footage, the number of bedrooms, the number

of bathrooms, and the lot size. Explain each factor’s mean and standard deviation. What does

each of these summary statistics tell us.

A total of ten calculations 4 points each for a total of 40 points.

Part 2 – Estimate and interpret a multiple regression model where the asking price is the

response variable and the other four factors are the explanatory variables.

The end result should be a Excel Regression Output

Also provide the **estimate model equation**: Price =

A total of 40 points will be assigned to Part 2.

Part 3 – Interpret the resulting coefficient of determination.

A total of 20 points will be assigned to Part 3.

Part 4 – Write your findings in thorough, concise, and well-written report form. For an example

review and refer to other reports throughout your textbook. There is at least one at the end of

each chapter. Please note you are expected to use proper statistical terminology when

appropriate but remember you are writing for a group who may not be as knowledgeable about

statistics as you are. You must be sure they can understand your findings while also writing a

professional report.

A total of 50 points will be assigned to Part 4.

Part 5 – Prepare your report in a PowerPoint Presentation and record your presentation within

Relay according to the instructions provided in the Blackboard “PowerPoint Presentation Case

Study Information” located within the Case Study folder.

A total of 50 points will be assigned to Part 5.

The submission link to attach your Case Study Report, PowerPoint Presentation and Excel Data

Output Worksheet is in the same Case Study folder. You will record your PowerPoint

Presentation under “Student Recordings” within Knowmia (formerly Relay). Refer to the course

schedule for the Case Study due date. The case study is valued at a total of 200 points.