Yoo et al. (2014) recently studied the impacts of a variety of factors influencing house prices in Prescott, Arizona. Prescott metropolitan area in Central Arizona includes five recreational lakes - Granite Basin Lake, Watson Lake, Willow Creek Reservoir, Lynx Lake and Upper Goldwater Lake. The five lakes in the study area provide a range of benefits - recreational opportunity, scenic beauty, clear water, etc - to the residents of Prescott, and hence easier access to those lakes is expected to increase nearby residential property prices. Higher level of sedimentation in the lake or rivers leads to physical disruption of water quality and creates high levels of turbidity by limiting penetration of sunlight into the water column. Therefore, higher level of sedimentation is expected to decrease nearby residential property values. Using a regression model(s), you will investigate a variety of environmental, structural, and socio-economic factors that affect residential property values using this dataset (Prescott_Parcel.xlsx).
Description of variables included in the dataset is shown below:
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Variable
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Description
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Price Land_fcv
Age
Time
Pop_sqml
Gr_fl_ar
Patio_Floor
sedi_per_lake
Imp_fcv
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Residential property sales in dollar (Year: 2003)
Land full cash value in dollar (reflection of the market value of your property and consists of land and improvements)
The age of property
Traveling time to the nearest lake in minute
Number of population/mile2 in 2000 (measured on a Census tract level) The area of ground floor (sq)
The ratio of patio area to total area (Total area=ground floor area+patio area)
Tons of sediment loads/lake acre in the nearest lake from each residential property Improved full cash value
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Provide a 10-page case study report that covers the following issues at the minimum:
- What are the research questions you want to investigate using this dataset?
- Based on a multiple linear regression model, which variables are significant, and which variables are not? Did the signs of each variable come out as expected?
- What does the results from the linear regression model show about the economic value of access to recreational lakes?
- Does water quality have a significant impact on house prices?
- Are structural variables statistically significant and their signs come out as expected?
- How would you explain the impact of population density on housing price?
- Based on the results, what would you suggest property developers, house buyers, or local government decision makers should do to improve the environmental and economic quality (welfare) of local community?
Attachment:- prescott_parcel1.rar