question archive A tax assessor wishes to develop a model to be used for estimating the value of a home for determining property taxes
A tax assessor wishes to develop a model to be used for estimating the value of a home for determining property taxes
Subject:StatisticsPrice: Bought3
A tax assessor wishes to develop a model to be used for estimating the value of a home for determining property taxes. A local real estate ?rm provided a data set (columns C6 thru C21) in a particular development area (location, location, location) containing the predictor variables: 1) Value: Most recently assessed home value H=Value) Predictor Variables 2) Acreage: Area of lot in acres 3) stories: number of stories the home has 4) Area: Square footage 5) Exterior: 1=Exterior in excellent or good condition, 0=Exterior in average or poor condition. 6) NatGas: 1= has natural gas heat (the most desirable), 0 = other heating system 7) Rooms: total number of rooms 8) Bedrooms: Number of bedrooms 9) FullBath: number of ?ll bathrooms 10) Halfbath: number of half bathrooms 11) Fireplace: 1=Yes O = No 12) Garage: 1=Yes 0=No 13) Area**2: Area of home squared 14) Acreage**2: Acreage of lot squared 15) Stories**2: number of stories the home has squared 16) Rooms**2: total number of rooms squared
a. Based on these Best Subsets results, use the various selection criteria discussed in class to recommend two or 3 potential models for further evaluation. b. Discuss the limitations of this Best Subsets selection algorithm. Why shouldn't you just recommend a single model and be done with it? c. Based on your potential models, and additional analysis, recommend a model. Discuss why you chose this particular model.
