multiple regression

SadieKhan

TS Contributor
#1
Hi ,
i have three variables for the question below.For each scenarios that is gulf view houses and no gulf view houses.
The variables are sale price, list price and number of days to sell the house.
I have to predict the number of days to sell and the sale price using list price.
The question is below.
Gulf Real Estate Properties just signed contracts for two new listings: a Gulf View condominium with a list price of $589,000 and a No Gulf View condominium with a list price of $285,000. What is your estimate of the final selling price and number of days required to sell each of these units?

My solution:
I am finding simple regression between the sale price and list price then I find sale price by putting in number of days then I find the number of days putting the values of sale price in a simple regression line between number of day and sale price.
I am not sure if it is correct or not.
Any suggestions?
Thanks
 

SadieKhan

TS Contributor
#3
Thank you Link for taking the time to reply me.
I have attached the file of the data, I am not sure how to go about this question, it is not necessary to use regression, though i thought it would be the only way to estimate the value.
 

vinux

Dark Knight
#5
Forecasting number of days using sale price may not seems a good model here.
Reason:
Because the houses are not identical(within Gulf view/ no gulf view). If all houses are identical, following assumption should hold
lesser the price => lesser number of days
This relationship should be required for building basic demand price model.


May be you should identify more variables influencing the Y variable and then build the model