preview

Condo Sales Case

Decent Essays

PART II: Regression Analysis and Model Building (80 points) The Condo Sales Case This case involves an investigation of the factors that affect the sale price of Oceanside condominium units. It represents an extension of an analysis of the same data by Herman Kelting (1979). Although condo sale prices have increased dramatically over the past 20 years, the relationship between these factors and sale price remain about the same. Consequently, the data provide valuable insight into today’s condominium sales market. The sales data were obtained for a new oceanside condominium complex consisting of two adjacent and connected eight-floor buildings. The complex contains over 200 units of equal size (approximately 500 square feet each). The …show more content…

The floor location of the unit; the variable levels are 1, 2, …, 8. 3. Distance from elevator. This distance, measured along the length of the complex, is expressed in number of condominium units. An additional two units of distance was added to the units in building 2 to account for the walking distance in the connecting area between the two buildings. Thus, the distance of unit 105 from the elevator would be 3, and the distance between unit 113 and the elevator would be 9. The variable levels are 1, 2, …, 15. 4. View of ocean. The presence or absence of an ocean view is recorded for each unit and specified with a dummy variable (1 if the unit possessed an ocean view and 0 if not). Note that units not possessing an ocean view would face the parking lot. 5. End unit. We expect the partial reduction of view of end units on the ocean side (numbers ending in 11) to reduce their sale price. The ocean view of these end units is partially blocked by building 2. This qualitative variable is also specified with a dummy variable (1 if the unit has a unit number ending in 11 and 0 if not). 6. Furniture. The presence or absence of furniture is recorded for each unit, and represented with a single dummy variable (1 if the unit was furnished and 0 if

Get Access