2. Rogers, Arkansas 72756
• Rogers, AR is located in Benton County
in Northwest Arkansas.
• The city has a population of
approximately 59,000 people.
• It has a median household income of
$46,420.
• The population has grown 52% in the
past decade.
http://www.city-data.com/city/Rogers-Arkansas.html
3. Data Collection
• We have chosen 107 homes from zip
code 72756
• Y Variable: House Price
• X Variables: Bedrooms, Baths, Sq.
Ft., Fireplace Dummy, Swimming Pool
Dummy, Number of Stories
• We collected the data from Zillow.com
4. Residual Analysis
SUMMARY OUTPUT
Outliers in our data set included
Regression Statistics
observations 9,73,71,79,106. We
Multiple R 0.902657682
removed these outliers from the data set.
R Square 0.814790892
Adjusted R Square 0.811049294
Standard Error 39231.68161
Observations 102
ANOVA
Significance
df SS MS F F
Regression 2 6.70336E+11 3.35E+11 217.7655 5.61E-37
Residual 99 1.52373E+11 1.54E+09
Total 101 8.2271E+11
Upper Lower Upper
Coefficients Standard Error t Stat P-value Lower 95% 95% 95.0% 95.0%
Intercept -40177.6529 12952.7347 -3.10187 0.002506 -65878.7 -14476.6 -65878.7 -14476.6
SquareFeet 96.9731385 4.832838272 20.06546 1.16E-36 87.38374 106.5625 87.38374 106.5625
Age in years -731.252234 296.6188421 -2.46529 0.015411 -1319.81 -142.696 -1319.81 -142.696
5. Outliers
Address Price Rooms Baths Sq. Feet LotSize Age Fireplace SwimmingPool Stories Yr. Built
2707 N 5th St, Rogers, AR $50,000 3 2 1,028 6,534 15 0 0 1 1997
8060 Pine Ln, Rogers, AR $170,000 3 2.5 1,997 17,859 34 1 0 1 1978
3003 N 17th St, Rogers, AR $178,000 3 2.5 2,063 7,840 3 0 0 1 2009
6 Acapulco Dr, Rogers, AR $198,000 3 2 2,412 28,749 19 1 0 1 1993
112 Woodcliff Ln, Rogers, AR $360,000 4 4.5 3,830 77,972 12 1 1 2 2000
6. One of the Outliers from the Dataset:
6 Acapulco Dr, Rogers, AR.
Picture from : http://www.zillow.com
7. Residual Analysis
We removed the same outliers in
as in the previous slide.
8. Sample Prediction Prices
Address Predicted Price Asking Price NumBedrooms NumBaths SquareFeet Age Built Fireplace Pool NumStories
10412 Kays Ln, Rogers, AR $140,990.92 $92,000 3 2 1906 5 2007 N N 1 story
10472 Kays Ln, Rogers, AR $148,360.64 $129,900 4 2 1982 5 2007 Y N 1 story
6105 S 39th St, Rogers, AR $115,726.26 $149,900 3 2 1,653 6 2006 Y N 1 story
3507 W Hemlock St, Rogers, AR $160,143.28 $159,900 3 2 2194 17 1995 Y N 1 story
3701 N 2nd Pl, Rogers, AR $152,716.34 $164,900 4 2 2042 7 2005 N N 1 story
8729 Par Ln, Rogers, AR $159,259.41 $172,800 3 2 2,298 32 1980 Y N 1 story
19052 Coppermine Rd, Rogers, AR $196,212.93 $179,500 3 3 2664 30 1982 Y N 1 story
14303 Fox Rd, Rogers, AR $144,176.60 $185,000 3 2 2150 33 1979 Y N 1 story
705 Creekwood Rd, Rogers, AR $268,104.26 $190,000 3 2.5 3428 33 1979 Y N 1 story
10 Yocum Rd, Rogers, AR $290,823.85 $214,900 5 3 3700 38 1974 Y N 1 story
Of the ten test houses currently on the market, four are priced above the predicted price, five
below the predicted price and one almost at the predicted price. Based on these ten houses, we
would conclude that the market was once depressed but is on the cusp to mending. The four
houses selling above the predicted price are probably houses recently added to the market. The
five below are probably houses that have been on the market for some time now and prices have
been reduced. Of course, this conclusion is only based on the ten houses for sale and may not
necessarily be generalizable
9. 3507 W Hemlock St, Rogers, AR
Picture from : http://www.zillow.com
10. Conclusion
• We collected data from zip code 72756 near Rogers, Arkansas.
The data included 102 houses in the sample; we removed 5
outliers from the sample data.
• For the regression analysis, the pricing model we used was:
“HousePrice=-40177.65 + 96.97SquareFeet- 731.25Age” Using
the same data we calculated a R2 of 0.811049.
• We used 10 houses that were currently on the market and used
the pricing model to predict the price and compare to the actual
price. Using these 10 houses we calculated 4 houses below the
market, 5 above the market, and 1 house within $300 of the
asking price.
• The four houses selling above the predicted price are probably
houses recently added to the market. The five below are
probably houses that have been on the market for some time
now and prices have been reduced. Of course, this conclusion is
only based on the ten houses for sale and may not necessarily
be generalizable.
