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Prediction of house price using multiple regression

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- Constructed a mathematical model using Multiple Regression to estimate the Selling price of the house based on a set of predictor variables. - SAS was used for Variable profiling, data transformations, data preparation, regression modeling, fitting data, model diagnostics, and outlier detection.

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Prediction of House Price using Multiple Regression By Vinod Kumar Shanmugam MATH 661 – APPLIED STATISTICS PROFESSOR ARIDAMAN JAIN FALL 2009
ABSTRACT ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
VARIABLES USED FOR ANALYSIS ,[object Object],[object Object]
STASTISTICAL APPROACH ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
EXPLORATORY DATA ANALYSIS ,[object Object],[object Object]
DISTRIBUTION OF HOUSING PRICE VARIABLE WITHOUT NATURAL LOG TRANSFORM ,[object Object]
DISTRIBUTION OF HOUSING PRICE VARIABLE WITH NATURAL LOG TRANSFORM ,[object Object],[object Object],[object Object],[object Object]
CORRELATION AND REGRESSION ANALYSIS: ,[object Object],[object Object],[object Object],The highlighted correlation is greater than 0.5 and have strong positive or negative correlation and will be able to explain the variation of house price in the regression model better than other variables. Automatic variable selection is done in sas based on amount of variability explained in the model.
MULTIPLE REGRESSION ANALYSIS: ,[object Object],[object Object]
Main Points from SAS output: ,[object Object],[object Object],[object Object],[object Object]
Identifying Outliers using residuals ,[object Object]
Main Points from SAS output ,[object Object],[object Object],[object Object],[object Object]
Explaining the effect of each independent variable selected by the regression model ,[object Object],[object Object],[object Object]
Explaining the effect of each independent variable selected by the regression model (Cont..) ,[object Object]
Explaining the effect of each independent variable selected by the regression model (Cont..) ,[object Object],[object Object],[object Object]
PLOT OF ACTUAL VS PREDICTED VALUE ,[object Object],PLOTS OF Actuals vs Predicted Value after removing outliers, now it looks quite linear association between actual vs predicted.
CUMULATIVE DISTRIBUTION OF PREDICTION ERROR % ,[object Object],[object Object],[object Object],[object Object]
CONCLUSION ,[object Object],[object Object],[object Object]

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Prediction of house price using multiple regression

  • 1. Prediction of House Price using Multiple Regression By Vinod Kumar Shanmugam MATH 661 – APPLIED STATISTICS PROFESSOR ARIDAMAN JAIN FALL 2009
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