University Empirical Business Analysis Report: ECON 2007 Assignment

This report presents an empirical business analysis conducted for the ECON 2007 course, focusing on modeling the factors influencing house selling prices using regression analysis. The analysis involves constructing two regression models: one with standard independent variables (land area, equivalent area, number of rooms, condition, and years since construction) and another that incorporates interaction variables. The study aims to determine whether the inclusion of interaction variables improves the model's quality. The findings indicate that the initial model, without interaction variables, provides a better fit, despite some limitations, such as the statistical insignificance of the 'years' variable and an unexpected inverse relationship between the number of rooms and the sales price. The report includes detailed discussions on model construction, results, and limitations, offering insights into the relationships between various factors and house prices. The report concludes by suggesting the initial model can be used to predict house prices under specified conditions.