Advanced Regression Assignment

Table of Contents

• General Information
• Technologies Used
• Conclusions

General Information

• Background: A US-based housing company named Surprise Housing has decided to enter the Australian market. The company uses data analytics to purchase houses at a price below their actual values and flip them on at a higher price. For the same purpose, the company has collected a data set from the sale of houses in Australia.

• Business problem: Aim is to model the price of houses with the available independent variables. This model will then be used by the management to understand how exactly the prices vary with the variables. They can accordingly manipulate the strategy of the firm and concentrate on areas that will yield high returns. Further, the model will be a good way for management to understand the pricing dynamics of a new market.

Technologies Used

• matplotlib
• seaborn
• pandas
• numpy
• statsmodels
• sklearn
• scipy

Conclusions

1. OverallQual is by far the most important predictor
2. The top variables are intuitive.
3. Lasso is the chosen model for the final model, because it creates a simple model with the top features.