Name

Index
Corelation
In research, correlation analysis is a statistical approach for calculating the link between two
variables and measuring the strength of the linear relationship between them. A high
correlation indicates a strong association between the two variables, whereas a low
correlation indicates a poor relationship between the variables.
When it comes to market research, correlation analysis is used to examine quantitative data
obtained through survey and live polling methodologies. They are attempting to determine
the link, patterns, major connections, and trends that exist between two variables or datasets.
When an increase in one variable causes an increase in the other, there is a positive
correlation between the two variables. A negative correlation, on the other hand, suggests that
as one variable rises, the other falls, and vice versa.

  Offers Sq Ft Bedrooms Bathrooms Price

Offers 1
Square Feet 0.336923352 1
Bedrooms 0.11427061 0.483807 1
Bathrooms 0.143793404 0.522745 0.414555956 1
Price -0.313635883 0.552982 0.525926058 0.523257758 1

Interpretation
 Offers and Square Feet have a Positive Correlation (0.336)
 Offers and Bedrooms have a Positive Correlation (0.114)
 Offers and Bathrooms have a Positive Correlation (0.143)
 Offers and Price have a Negative Correlation (-0.313)
 Square Feet and Bedrooms have a Positive Correlation (0.483)
 Square Feet and Bathrooms have a Positive Correlation (0.522)
 Square Feet and Price have a Positive Correlation (0.552)
 Bedrooms and Bathrooms have a Positive Correlation (0.414)
 Offers and Square Feet have a Positive Correlation (0.336)

 Executive Summary:

While many aspects of housing markets have been widely studied, little
empirical study on housing service supply has been done. Despite the lack of
data, numerous scholars have described housing supply as competitive. As a
result, the purpose of this essay is to open up the debate of housing service
supply and to investigate the amount of sellers' market concentration across a
number of multifamily rental housing submarkets. New information on the
concentration of sellers is revealed. A model is constructed and estimated to
determine the impact of non-competitive corporate behaviour on the price of
housing services. The findings support the idea that housing service supply is
not totally competitive.
 Introduction

The Housing Market is the supply and demand for houses in a specific country
or region. The average and trend in house prices are important aspects of the
housing market.
Housing prices comprise indices for housing rents, real and nominal house
prices, and price-to-rent and price-to-income ratios. In most situations, the
nominal house price index covers both new and existing home sales, as per the
RPPI (Residential Property Prices Indices) manual's guidelines.
The ratio of the nominal house price index to the consumers' spending deflator
in each country from the OECD national accounts database yields the real
house price index. Both indices are adjusted for seasonality. The price to
income ratio is calculated by dividing the nominal housing price index by the
nominal disposable income per person, and it can be used as a measure of
affordability. The price to rent ratio is calculated by dividing the nominal house
price index by the housing rent price index, and it can be used to determine
the profitability of home ownership.
Single-family home sales in Mid-City have been strong current year. This has
been especially true in older, more established communities, where housing is
more affordable than in newer neighbourhoods where new homes are being
built. However, many families are ready to pay a greater price in exchange for
the prestige of residing in one of the newest areas.

The Housing Market includes the following features:

 Supply of housing – quantity of housing stock

 Demand for housing
 House prices
 Rented sector. Buy to let investment and demand from tenants
 Government intervention in the Housing market
Factors which affect the Housing Market

 Interest rates – which influence cost of variable mortgages.

 State of mortgage industry – determines whether people are
eligible for mortgages.
 Economic growth, incomes and unemployment rates.
 Population and demographic trends.

INDIA'S HOUSING MARKET FEATURES

 The INDIA housing market is prone to volatility due to a variety of
causes.
 INDIA'S housing market has an impact on the whole economy. When
property prices decline, for example, consumer spending tends to fall.

 Because the housing market has such huge impact on the economy and
individual homeowners, it is critical to try to forecast future housing
market changes.
 Housing Price Structure in Mid City:

In the recent past, the price of a newly built house has increased. It has
become a brisk for many people to buy the lately built houses as compared to
the ancient ones. However, there still exists people who prefer the ancient
houses made of brick. Though the homes and their price have been known for
centuries, the recent houses are unique in their pervasiveness.
The new settlement houses though they are expensive as compared to the
older ones still have customers. People are still willing to pay a large amount of
money to live with their families in the houses. This could be due to the status
accorded to those living in the houses.
The other reason could be due the facilities offered in the newly built houses.
The factors considered when one is deciding on the kind of house to lent or
purchase include; the number of bedrooms available, the neighbourhood in
the house, the offers made in the room, the number of bathrooms and the
price of the room.

Therefore, depending on the likes and interests of the buyer, he or she may
opt to go for the expensive newly built houses instead of the ancient brick
rooms. From the data provided, it is evident that the pricing of the houses
increases as the house has many rooms. Even a brick house that is located near
newly built houses or that whose neighbourhood are expensive, it will be
expensive than those old brick houses that are located with other old houses.
The regression equation for any given variable is given as Y= bX+ a where a and
b are variables and are calculated as:
Y= bX+ a, where a and b are variables and are calculated as shown below.
from the data provided for premium paid for the old and the new houses, we
obtain the values of a and b as shown above and find that;
a= -0.194
b= 0.0978
Therefore, the regression equation becomes
Y=0.0978X-0.194
To estimate the premiums of houses depending on the location and privileges,
we use the above equation.
If the price of the old house and the new houses are the same, many people
would prefer the new ones. No one is willing to pay for an older house made of
bricks the same price that they can use to buy a newly built house. It has
become a common thing in the Mid-City for people to opt living in the said
prestigious rooms instead of the older brick houses.
As time goes by, human beings become used to doing the same thing and if a
new idea comes, they tend to follow it. Therefore, if the price is constant
people will not pay premiums for the brick house but instead, they will go to
the newly built house. The houses that have been constructed of late have
features that are more appearing that the common brick house and they,
therefore, draw the attention of many.
If a brick house is built in the neighbourhood of newly built house, it may
require a higher premium than that which is in the ordinary neighbourhood of
other brick houses. The increased premium is due to status accorded to the
newly built house. In the same way, if a house is built in the neighbourhood of
the ancient brick houses, it may not draw the attention of many, and so its
price will remain low as compared to those whose neighbourhood are new
houses.
Houses have become a trend in the recent past, and new houses have
frequently been built. In the same way, people have been opting the newly
build houses due the status and the benefits that come with the new houses.
However, there are people who choose to remain in the older houses due to
cost and convenience. In future, the old houses will continue being eliminated,
and new houses will be built. People will, therefore, continue upgrading and
shifting to new houses so long as they will afford the cost that comes with the
new houses.

Concepts Used in the Project:

Multiple linear regression:

Multiple linear regression (MLR), often known as multiple regression, is a

statistical technique that predicts the result of a response variable by
combining numerous explanatory variables. Multiple linear regression
attempts to represent the linear relationship between explanatory
(independent) and response (dependent) variables. Because it incorporates
more than one explanatory variable, multiple regression is essentially an
extension of ordinary least-squares (OLS) regression.
 The multiple regression model is based on the following assumptions:

 There is a linear relationship between the dependent variables and the

independent variables
 The independent variables are not too highly correlated with each other
 YI observations are selected independently and randomly from the
population
 Residuals should be normally distributed with a mean of 0
and variance σ

ANALYSIS OF VARIANCE (ANOVA)

The analysis of variance (ANOVA) is a statistical method that divides a data

set's observed aggregate variability into two parts: systematic components
and random factors. Random factors have no statistical impact on the
supplied data set, whereas systematic influences do. In a regression research,
analysts utilise the ANOVA test to examine the impact of independent factors
on the dependent variable.

One-Way ANOVA Versus Two-Way ANOVA:

One-way (or unidirectional) and two-way ANOVA are the two primary kinds of
ANOVA. There are also different types of ANOVA. For example, MANOVA
(multivariate ANOVA) varies from ANOVA in that the former analyses many
dependent variables simultaneously while the latter assesses only one. The
number of independent variables in your analysis of variance test determines
whether it is one-way or two-way. The impact of a single factor on a single
response variable is assessed using a one-way ANOVA. It determines if all of
the samples are identical. The one-way ANOVA is used to see if there are any
statistically significant differences between three or more independent
(unrelated) groups' means.
The one-way ANOVA is expanded into a two-way ANOVA. One independent
variable influences a dependent variable in a one-way analysis. There are two
independent variables in a two-way ANOVA. A two-way ANOVA, for example,
allows a business to compare worker productivity based on two independent
factors like income and skill set. It's used to look at how the two elements
interact and to assess the influence of two factors at the same time.
Problem Statement

Single-family home sales in Mid City have been brisk this year. This has been
especially true in older, more established communities, where housing is more
affordable than in newer neighbourhoods where new homes are being built.
However, many families are ready to pay a greater price in exchange for the
prestige of residing in one of the newest areas.

We've taken the data of 128 states. In mid city,the neighbourhood (1, 2, or 3)
in which the property is located, the number of offers placed on the house, the
square footage, whether the house is mostly made of brick, the number of
baths, the number of bedrooms, and the selling price are all listed for each
transaction. Neighbourhoods 1 and 2 are more traditional areas, whilst
Neighbourhood 3 is a newer and more prestigious area.
To estimate and explain the pricing structure of residences in Mid City, use
regression. Here are some things to think about.
1. Do purchasers pay more for a brick house if everything else is equal?
2. Is there a premium for a home in neighbourhood 3 if all other factors are
equal?
3. Is there an additional charge for a brick house in Neighbourhood 3 over and
above the standard fee?
4. Could neighbourhoods 1 and 2 be combined into a single "older"
neighbourhood for the purposes of estimation and prediction?
 OBJECTIVES
 Do buyers pay a premium for a brick house, all else being equal?
 Is there a premium for a house in neighbourhood 3, all else being equal?
 Is there an EXTRA premium for a brick house in neighbourhood 3, in
addition to the usual premium for a brick house?
 For purposes of estimate and prediction, could neighbourhoods 1 and 2 be
collapsed into a single “older” neighbourhood?

Chapter – 2 Research Methodology

I used multiple reggression, histograms, pivot table and descriptive statistics,

to interpret the pricing structure of the houses in MidCity

In this problem our variables are:

1. Selling Price - the outcome variable (DV)

2. neighbourhoods - a predictor variable (IV1)
3. offers made - a predictor variable (IV2)
4. square ft. of the house - a predictor variable (IV3)
5. material build by brick - a predictor variable (IV4
6. number bathrooms - a predictor variable (IV5)
7. number of bedrooms - a predictor variable (IV6)
8. number bathrooms - a predictor variable (IV7)
 Analysis and Interpretation

The average property price is 260854.6875 dollars, with a median of 251900

dollars and a standard deviation of 53737.54074 dollars. According to the
statistics, there is a number of premiums for houses in neighbourhood 3 as a
number of 9 properties sold by the starting premium price of 315200 to the
maximum of 422400, whereas other neighbourhoods only managed to attain a
maximum of 314200.

Aside from that, we can see that there is an extra premium for a brick house in
neighbourhood 3 because it sold at 16 brick houses ranging from the standard
premium of 303200 to the highest premium of 422400. Meanwhile, there are
just 23 non-brick houses at the same location, with a maximum price of 361800.

It is well known that brick residences are more expensive on average than non-
brick homes. Now we'll take a look at the pricing structure of houses with all of
the variables taken into account. Brick homes will continue to command a
higher price. This equation explains 83 percent of the dependent variable, which
is a good R squared of 0.825524963.
Strategic Alliances of Reliance

 The strategic partnership between both google and jio platforms to overcome existing
market challenges i.e to produce new android phones that cost fractions. Google is
going to invest Rs 33,737 crore into Jio Platforms 
 In the fuel retail business, Reliance and BP formed a new Joint Venture to grow the
retail service station network and aviation fuels business across India.
 Reliance Industries' partnership with Saudi Aramco for its USD 75 billion oil-to-
chemicals business signals expansion rather than retreat as growth opportunities are
expected to boost the petrochemical and refining vertical, market analyst firm
Bernstein said.
 Making next generation 5G technology affordable with Qualcomm
 Nurturing new growth platforms with investments from marquee global investors
 With these, Reliance has now sold 22.38 per cent of Jio Platforms to investors securing
Rs.104,326.95 crore in less than 8 weeks.

Brick House Price

Mean 295538.1

Standard Error 8279.73

Median 295000
Mode 253000
Standard
Deviation 45178.52
204109879
Sample Variance 1
Kurtosis -0.19
Skewness 0.3
Range 223600
Minimum 138200
Maximum 361800
Sum 20976800
Count 86

Non Brick House Price

Mean 243916.2
 8
Standard
Error 4871.73
Median 235300
Mode 235600

Yes, the buyer paid a higher price for a brick property, especially in the new N3 neighbourhood.
People are willing to spend more money to reside in a brick home, according to descriptive statistics
of non-brick vs. brick dwellings.

The descriptive statistics for non-brick vs. brick dwellings show that the average price difference
between the two types of residences is about $52,000. The disparity in the median price is
significantly greater. The difference between the median and mean price in non-brick dwellings can
be explained by a few "outliers," non-brick properties that sell for a high price. The majority of
homes in each price range may be found using a histogram for each type of property.

Problem Statement