Question: Subset the data based on variables, such as number of bedrooms, number of bathrooms, home square footage, lot square footage, and age of the house.
Subset the data based on variables, such as number of bedrooms, number of bathrooms, home square footage, lot square footage, and age of the house. Which variables can be removed when predicting house prices? Are there any variables that display a skewed distribution? If there are, perform logarithm transformations for these variables. Would it make sense to transform some of the numeric values into categorical values using the binning strategy? Is equal size or equal interval binning strategy more appropriate in these situations?
| Application | LoanType | PropertyType | Purpose | |
| 1 | Conventional | Single-family | Purchase | |
| 2 | Conventional | Multi-family | Refinancing | |
| 3 | Federal Housing | Single-family | Purchase | |
| 4 | Conventional | Multi-family | Refinancing | |
| 5 | Conventional | Single-family | Purchase | |
| 6 | Federal Housing | Single-family | Refinancing | |
| 7 | Conventional | Single-family | Refinancing | |
| 8 | Federal Housing | Multi-family | Refinancing | |
| 9 | Conventional | Single-family | Refinancing | |
| 10 | Federal Housing | Single-family | Refinancing | |
| 11 | Federal Housing | Single-family | Refinancing | |
| 12 | Federal Housing | Single-family | Purchase | |
| 13 | Federal Housing | Multi-family | Refinancing | |
| 14 | Federal Housing | Multi-family | Purchase | |
| 15 | Conventional | Multi-family | Refinancing | |
| 16 | Conventional | Multi-family | Purchase | |
| 17 | Conventional | Single-family | Refinancing | |
| 18 | Conventional | Multi-family | Refinancing | |
| 19 | Federal Housing | Multi-family | Refinancing | |
| 20 | Conventional | Multi-family | Purchase | |
| 21 | Federal Housing | Multi-family | Purchase | |
| 22 | Conventional | Multi-family | Refinancing | |
| 23 | Federal Housing | Single-family | Purchase | |
| 24 | Conventional | Single-family | Refinancing | |
| 25 | Federal Housing | Multi-family | Refinancing | |
| 26 | Conventional | Single-family | Purchase | |
| 27 | Conventional | Single-family | Refinancing | |
| 28 | Conventional | Multi-family | Refinancing | |
| 29 | Conventional | Single-family | Purchase | |
Step by Step Solution
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Identify Variables for Removal To determine which variables can be removed when predicting house prices you can perform a correlation analysis or use ... View full answer
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