CASE STUDY: JMP024
Housing Prices
by Marlene Smith, University of Colorado Denver Business School
Key Concepts: Scatterplot matrix, correlations, multiple regression, stepwise regression, multicollinearity, model building, model diagnostics
University of Colorado Denver
Objective
After determining which factors relate to the selling prices of homes located in and around a ski resort, develop a model to predict housing prices.
Background
A real estate company that manages properties around a ski resort in the United States wishes to improve its methods for pricing homes. Data is readily available on a number of measures, including size of the home and property, location, age of the house, and a strength-of-market indicator.
The Task
After determining which factors relate to the selling prices of homes located in and around the ski resort, develop a model to predict housing prices.