Statistics for economics
Individual assignment.
This assignment requires you to produce an individual report. Use the questions below to help you preparing the report.
Provide full details and discussion.
The Excel file ‘HousePrices’ on Moodle contains information on 321 houses that are sold recently. Below are descriptions of variables in the data:
Variable Definition
House_id : ID of the house in data
Price : Selling price of the house (in £)
Age : Age of the house (in years)
Rooms : Number of rooms in the house
Baths : Number of bathrooms in the house
Prepare a report that addresses the following:
1. Use numerical descriptive measures to summarize the characteristics of the houses in the data (i.e., age, number of rooms, number of bathrooms, selling price). [10 marks]
2. Use graphical representation to summarise the characteristics of the houses in the data. [20 marks]
3. Define a house as “new” if it has less than 50 years of age, and “old” if it has 50 or more years of age. When you consider the population of houses that this data is selected from, is there evidence that the average number of rooms is statistically different from each other in the “new” and “old” houses? [20 marks]
4. Is there statistical evidence that the average price of houses with one bathroom is different than the average price of houses with more than one bathroom? [20 marks]
5. Estimate a regression model with house selling price as the dependent variable and the age of the house, number of rooms, and number of bathrooms as explanatory variables. Comment on the impact of each of these explanatory variables on house prices.
