\f\f\f4. Variable Expected coefficient sign Explanation SQFT Positive Generally price is quoted in terms of SQFT and we expect price to increase as size increases Year Positive The financial crisis that happened in 2008 is expected to have brought real estate prices down and as we move away from the crisis we can expect prices to increase due to increase in demand for real estate DumMiami Ambiguous Though prices in certain districts can be on an average higher or lower than others, it is difficult to estimate this effect without more accurate data about the location of the real estate Class Negative The quality of real estate decreases from A to C and hence we expect prices to decrease in the same order. 5. Variable Explanation Expected coefficient sign Explanation Interest _rate Continuous variable expressed in fraction. Ex: 0.1 for 10% interest rate Negative As interest rates go up costs of borrowing increase hence prices of real estate should decrease to incentivize people to buy them Per_capita_inco me_of_people_ in_the_region Integer variable expressed in closest dollar amount per year. Ex: 1000$, 1001$, 2000$ Positive As spending power increases , it is expected that prices of real estate goes up. Population_ave rage_age Integer variable expressed in closest whole number age. Positive Older people will be more inclined to buy real estate and settle down than younger people who would prefer to rent rather than own in the short run. Eg: 30, 34, 39