Hypothesis testing to inform buying strategy and price offer model for a REIT. This was part of my IBM Final project in 2022. Business Problem: What factors should inform fair price offering / or buy thresholds of homes in boston? How can we then model fair price of homes against such factors ?
CONCLUSION
- Distance to Boston employment center is a key determining factor to price of homes in Boston.
- P value is less than 0.05, the distance to boston employement center has an impact on Median house prices. there is decent correlation at R-sq of .062. The closer to a boston employment center by 1.0916 the impact on median price. The regression eq can inform a pricing model to set expectations of what to pay.