A problem of interest is the relationship between the appraisedvalue of a property and its sale price. The sale price for anygiven property will vary depending on the price set by the seller,the strength of appeal of the property to a specific buyer, and thestate of the money and real estate markets. We want to examine therelationship between the mean sale price E(y) of a property and thevariables: appraised land value of the property, appraised value ofthe improvements on the property and neighborhood in which theproperty is listed. The data were collected from the propertyappraiser’s office of Hillsborough County, Florida, and saved inthe TAMSALES4 file. Four neighborhoods (Hyde Park, Cheval, Hunter’sGreen, and Davis Isles), each relatively homogeneous but differingsociologically and in property types and values, were identifiedwithin the city and surrounding area.

1. Draw scatter plots between the response Y and thequantitative variables.

2. Using the information, you got from the scatter plot and theknowledge in chapter 4 and 5, propose at least 3 different model tofind the relation between the mean sale price E(y) and thevariables. Try to build the models in such a way that one is nestedin other.

3. Conduct partial F test repeatedly and find a best model fromthe proposed models.

4. After the final model has been selected, Conduct the Global Ftest for the adequacy of the model.

5. Perform individual t test if you have doubt with any one ofthe variables.

6. Report the value of adjusted R-squared and standard error ofthe model.

7. Depending on your report in step six, explain in your word ifthe final model is good to use or it may need someimprovements.

8. Provide all the R codes you have used. TAMSALES4 file:

Using Rstudio:

FOLIO   SALES   LNSALES  LAND   IMP   TOTVAL   NBHD
129295710   378.0   5.93489  81.84   243.30   325.14  CHEVAL
129295830   273.0   5.60947  60.48   134.47   194.95  CHEVAL
129453028   321.2   5.77206  115.58   255.42   371.00  CHEVAL
129454156   327.0   5.78996  112.38   185.57   297.96  CHEVAL
129454194   382.5   5.94673  81.23   217.98   299.22  CHEVAL
129454316   242.0   5.48894  61.48   110.28   171.76  CHEVAL
129454374   242.0   5.48894  49.99   109.06   159.06  CHEVAL
129454524   510.0   6.23441  71.28   224.38   295.65  CHEVAL
129454536   285.0   5.65249  63.82   158.83   222.65  CHEVAL
129795122   500.0   6.21461  91.32   296.02   387.34  CHEVAL
129795276   825.0   6.71538  117.01   451.41   568.42  CHEVAL
129795456   515.0   6.24417  117.72   347.87   465.59  CHEVAL
129795468   520.0   6.25383  107.06   329.93   436.99  CHEVAL
129795488   780.0   6.65929  157.29   507.85   665.14  CHEVAL
129795506   825.0   6.71538  131.89   466.27   598.16  CHEVAL
129795510   841.0   6.73459  159.84   443.29   603.13  CHEVAL
129795606   1140.0   7.03878  157.49   563.91   721.41  CHEVAL
129842052   460.0   6.13123  59.36   206.84   266.20  CHEVAL
339720192   285.0   5.65249  39.75   166.61   206.36  HUNTERSGREEN
339721514   350.0   5.85793  54.00   227.43   281.43  HUNTERSGREEN
339721560   314.5   5.75098  48.84   187.13   235.97  HUNTERSGREEN
594030716   183.0   5.20949  34.75   158.05   192.80  HUNTERSGREEN
594030754   200.0   5.29832  29.10   145.80   174.90  HUNTERSGREEN
594030784   775.0   6.65286  142.27   350.43   492.70  HUNTERSGREEN
594030788   505.0   6.22456  99.62   306.43   406.05  HUNTERSGREEN
594030880   425.0   6.05209  47.52   225.74   273.26  HUNTERSGREEN
594030882   335.0   5.81413  49.01   217.35   266.36  HUNTERSGREEN
594031020   760.0   6.63332  96.10   335.59   431.69  HUNTERSGREEN
594031044   410.0   6.01616  75.79   274.22   350.01  HUNTERSGREEN
594031064   335.0   5.81413  67.22   273.66   340.88  HUNTERSGREEN
594033934   325.0   5.78383  47.02   241.87   288.90  HUNTERSGREEN
594033956   380.0   5.94017  47.74   307.20   354.94  HUNTERSGREEN
594033970   640.0   6.46147  45.55   336.44   381.99  HUNTERSGREEN
594034072   262.0   5.56834  51.97   152.96   204.94  HUNTERSGREEN
594034084   190.0   5.24702  51.25   151.68   202.94  HUNTERSGREEN
1176450000   500.0   6.21461  256.13   152.78   408.91  HYDEPARK
1186250000   550.0   6.30992  168.45   310.12   478.56  HYDEPARK
1186260000   205.8   5.32690  168.45   41.60   210.05  HYDEPARK
1692460000   590.0   6.38012  291.09   66.90   357.99  DAVISISLES
1692730000   525.0   6.26340  462.43   114.13   576.56  DAVISISLES
1692990000   340.0   5.82895  199.66   80.43   280.09  DAVISISLES
1693500000   3200.0   8.07091  1004.59   1129.65   2134.23  DAVISISLES
1694120000   500.0   6.21461  358.43   55.89   414.32  DAVISISLES
1694450000   1421.0   7.25912  391.46   550.78   942.24  DAVISISLES
1853130000   858.9   6.75565  242.47   281.62   524.09  HYDEPARK
1853270000   625.0   6.43775  264.00   184.63   448.63  HYDEPARK
1854060000   375.0   5.92693  242.00   33.79   275.79  HYDEPARK
1854250000   1240.0   7.12287  264.00   466.82   730.82  HYDEPARK
1855080000   850.0   6.74524  266.64   333.18   599.82  HYDEPARK
1855250000   2500.0   7.82405  533.28   1221.20   1754.48  HYDEPARK
1855590000   750.0   6.62007  266.64   366.05   632.69  HYDEPARK
1856430000   895.0   6.79682  266.64   358.77   625.41  HYDEPARK
1856800000   460.0   6.13123  264.00   183.54   447.54  HYDEPARK
1856960000   605.0   6.40523  210.00   259.67   469.67  HYDEPARK
1857420000   329.9   5.79879  210.00   105.94   315.94  HYDEPARK
1857460000   462.0   6.13556  210.00   145.19   355.19  HYDEPARK
1858190000   850.0   6.74524  264.00   362.71   626.71  HYDEPARK
1858440000   1525.0   7.32975  335.61   862.34   1197.95  HYDEPARK
1858450000   1400.0   7.24423  350.90   711.34   1062.24  HYDEPARK
1858770000   760.0   6.63332  264.00   257.47   521.47  HYDEPARK
1859190000   520.0   6.25383  250.23   157.75   407.98  HYDEPARK
1859400000   418.0   6.03548  193.20   147.43   340.63  HYDEPARK
1859590000   152.0   5.02388  118.80   106.14   224.94  HYDEPARK
1859620000   330.0   5.79909  118.80   123.98   242.78  HYDEPARK
1860510000   240.0   5.48064  192.01   221.54   413.55  HYDEPARK
1860580000   405.0   6.00389  223.74   122.18   345.92  HYDEPARK
1860890000   650.0   6.47697  203.49   209.11   412.60  HYDEPARK
1860920000   400.0   5.99146  203.49   101.58   305.07  HYDEPARK
1861000000   365.0   5.89990  207.48   112.78   320.26  HYDEPARK
1953960000   745.0   6.61338  291.63   83.22   374.85  DAVISISLES
1954130000   1650.0   7.40853  388.82   1023.36   1412.18  DAVISISLES
1954320000   1250.0   7.13090  648.96   81.01   729.97  DAVISISLES
1954870000   715.0   6.57228  344.12   265.18   609.30  DAVISISLES
1955990000   1215.0   7.10250  341.86   785.66   1127.52  DAVISISLES
1960100000   440.0   6.08677  179.52   58.40   237.92  DAVISISLES
1962380000   690.0   6.53669  357.07   121.25   478.33  DAVISISLES
1964590000   587.5   6.37588  300.93   75.99   376.92  DAVISISLES
1966620000   377.5   5.93357  238.86   43.95   282.81  DAVISISLES
1968140000   810.0   6.69703  195.84   479.00   674.84  DAVISISLES
1969380000   800.0   6.68461  242.47   367.40   609.87  HYDEPARK