Note: Replace the bracketed text on page one (the cover page) with your personal information.

1. Introduction

Discuss the statement of the problem in terms of the statistical analyses that are being performed. Be sure to address the following:

1. What is the data set that you are exploring?
2. How will your results be used?
3. What type of analyses will you be running in this project?

2. Data Preparation

There are some important variables that are used in this project. Identify and explain these variables.

1. What are the important variables in this data set?
2. How many rows and columns are present in this data set?

3. Model #1 - First Order Regression Model with Quantitative and Qualitative Variables

Correlation Analysis

1. Create the following scatterplots and include a copy of each in this section:
   • Price (price) vs. the living area (sqft_living)
   • Price (price) vs. the age of the home (age)
2. Describe what trends, if any, exist for each scatterplot.
3. Report the correlation coefficients between the following variables:
   • Price (price) vs. the living area (sqft_living)
   • Price (price) vs. the age of the home (age)
4. Describe the strength and direction of each correlation coefficient.

Reporting Results

1. Write the general form and the prediction equation of the multiple regression model using price as the response variable and living area, upper level area, age of the home, number of bathrooms, and view as predictor variables. Use
   

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