House Price Prediction in Walverville

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House Price Prediction in Walverville Executive Summary The purpose of the report is to provide a prediction price of a house in Schopenhauer Street in Erewhon Valley. The data we analysed by using regression model has been provided with a desirable adjust R2 approximately 57%. The expression of the model we estimated is shown as follows: House͡ Price (Thousand $) = 436.212 + 292.764*(WALVERVILLEi) – 2.498*(DISTANCEFROMUNIi) + 0.57*(SIZEi) + 34.638*(COLLINSVOODi) -66.350*(WALVERVILLE*WALLMATi) + 92.279*(MOUTAINVIEWi) – 48.195*(STORIESi) +0.102*(SIZE*STORIES*WALVERVILLEi) Where: WALVERVILLEi = 1 if the suburb is Walverville and 0 otherwise DISTANCEFROMUNIi = Distance from the university campus in KMs SIZEi = Size of house in square meters STORIESi = Number of stories of dwelling WALLMATi = 1 if the agent is Wallmat and 0 otherwise The key implication from the regression model is summarised as below: • The predicted value of the house price in Walverville is $943,135 if using the seller Wallmat, or $984,485 if using the seller Marks&Spencers. • 25%, 50%, 75%, 90%, 95%, and 99% prediction intervals of the sale price are provided in Table 2 below. Table 2 Prediction Intervals for the Owner’s Property in Walverville sale price (thousand $) |Level |Assuming Wallmat used |Assuming Marks&Spencers used | |25% |[905.3356-980.9344] |[971.6856-1047.2844] | |50% |[863.402-1022.868] |[929.752-1089.218] | |75% |[807.2936-1078.9765] |[873.6436-1145.3265] | |90% |[748.8227-1137.4473] |[815.1727-1203.7973]

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