Assignment Task
Your have been contracted to develop a hedonic house price model for a leading real estate group. Use the dataset “HOUSEPRICE” to estimate your preferred model(s) with salesprice as your response variable. Nearly all variables are potentially available as explanatory variables so it will need a careful process of model specification and testing. The goal is to try and get the most parsimonious (simple) model. You may choose 1 to 3 models as your preferred in order to achieve robust and consistent results.
- Executive summary – overview of project including summary of results
- Introduction – set the scene and background for modelling house prices (broad to specific issues)
- Literature review – summary of research literature estimating house price models (start with a short summary of each paper, then structure your paragraphs around themes you identify (eg. variables used, methods) and discuss similarities or differences you identify in your research – aim for at least 4 journal articles)
- Methodology – discuss the process you will follow (eg. Descriptive analytics, checking for multicollinearity between x variables, process of explanatory variable selection and treatment of outliers etc – no results to appear in this section)
- Body and analysis – present, discuss and interpret chosen model(s)
- Conclusions – wrap up the exercise with recommendations for client
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