Statistics Analysis

Tutorial Statistics

2011 - 2012

Take-home Exam

Tutorial Statistics

Analysis of prices of apartments in Bucharest

General description

We chose to analyze the factors that influence the price of the apartments in Bucharest. The population is represented by the apartments on sale. Our source for the data sampling is the online website www.anuntul.ro, which presents a very comprehensive list of all apartments available for sale in the city, with enough detailed information. The asked price is usually somehow higher than the actual price of sale, as it is common practice in Romania to negotiate prices at sale. The difference might be with 3-5% lower. At the moment of the analysis, there are a very big number of apartments available for sale, as it is a period of economic uncertainty, and prices are still expected to decrease sharply in next period. Therefore the below mentioned analysis should be used for the short-term purpose, as the market is quite unstable.

Analysis of prices of apartments in Bucharest

Sampling

Sampling method: randomly from the list provided, we chosen apartments with 1, 2 or 3 bedrooms from 3 separate areas (central, semi-central and suburbs) Number of samples: 71 apartments of different surfaces and different characteristics We performed our analysis with the purpose to explain the price as a function of the following independent variables: Location – central, semi-central, suburbs Age of the building Floor – if upper or intermediary level Surface (in square meters) Number of bedrooms Renovated or not

Analysis of prices of apartments in Bucharest

Interpretation

variance

Regression Statistics Multiple R 0.86962475 R Square 75.62% Adjusted R Square 74.15% Standard Error 10495.0648 Observations 71

R Square and adjusted R Square: indicate the proportion of variance in the price of the apartments that is explained by the linear combination of the variable analyzed in the regression model

Adjusted R Sq = 0.74...