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MIS770A – Foundation Skills in Data Analysis
To determine relationship between House Price and Suburb, the contingency tables (also called cross tabulation is constructed. For the given dataset including house price and suburb, the contingency table is constructed (See: Excel). From the contingency table, it can be depicted that there is no significant relationship between house price and suburb (Weiers, 2010). It is because there is no increasing or decreasing pattern in the house prices along with the suburbs. Houses with different prices are present in different suburbs.
To determine linear or non-linear relationships of the independent variables with House Price, scatter diagrams showing trendline and R2 are constructed. The scatter diagram shows that there is a positive relationship between house price and land size (See: Excel). The data points in plot appear to be randomly distributed as they are not close to the line (Groebner et al., 2011). Apart from this, in the scatter diagram between house price and house area, it can be determined that shows that there is a positive relationship between both variables as R square is 0.317 but it is not a strong relationship (See: Excel). It is because the data points in plot appear to be randomly distributed as they are not close to the line. In addition, the scatter diagram also shows that house price and weekly rent show a positive and weak relationship (See: Exce