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FACTORS DRIVING RESIDENTIAL PRICES IN BOSTON IN THE 1980’S.
KTH, School of Engineering Sciences (SCI), Mathematics (Dept.), Mathematical Statistics.
KTH, School of Engineering Sciences (SCI), Mathematics (Dept.), Mathematical Statistics.
2022 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesisAlternative title
DRIVANDE FAKTORER FÖR BOSTADSPRISER I BOSTON PÅ 1980-TALET. (Swedish)
Abstract [en]

This thesis report analyzes how different variables affected housing pricing in Boston in the 1980s. The goal was to form a deeper understanding of what could affect pricing for properties, both now and then. The method for analyzing this is a multiple linear regression analysis. The theory behind the work is based on linear regression and macroeconomics. The model is based on data collected by Harrison, D. and Rubinfeld, D.L. and obtained from The Carnegie Mellon University, Pittsburgh, Pennsylvania. The data consists of 506 observations with 20 variables each. The median value of the properties in a specific area measured in thousands of dollars is used as the response variable.The results of the report show that the number of rooms per dwelling has the largest effect on dwelling price, accounting for almost 40% of the influence in the final model, among the variables that were used. In second place comes the number of teachers per student and in third place is the tax rate in the area.The model result taken from showed good ability to approximately predict housing prices, with an adjusted R2 value of 0.8065.

Abstract [sv]

Denna avhandlingsrapport analyserar hur olika variabler påverkade prissättningen av bostäder i Boston på 1980 talet. Målet var att bilda en djupare förståelse i vad som kan påverka prissättningen för fastigheter i då och nutid. Metoden för att analysera detta är en multipel linjär regressionsanalys. Teorin bakom arbetet bygger på linjär regression och makroekonomi. Modellen är byggd på data insamlad av Harrison, D. and Rubinfeld, D.L och inhämtad från The Carnegie Mellon University, Pittsburgh, Pennsylvania. Datan består av 506 observationer med 20 variabler vardera. Som målvariabel används medianvärdet av fastigheterna i ett specifikt område uppmätt i tusentals dollar.Resultatet av rapporten visar att antal rum per fastighet påverkar mest bland de variabler som finns tillgängliga. Därefter kommer måttet antalet lärare per elev och på tredje plats kommer skattesatsen i området.Modellen resultatet togs ifrån uppvisade god förmåga att approximativt förutspå bostadspriserna, med ett justerat R2 värde på 0.8065.

Place, publisher, year, edition, pages
2022.
Series
TRITA-SCI-GRU ; 2022:295
National Category
Probability Theory and Statistics
Identifiers
URN: urn:nbn:se:kth:diva-326713OAI: oai:DiVA.org:kth-326713DiVA, id: diva2:1757012
Subject / course
Applied Mathematics and Industrial Economics
Educational program
Master of Science in Engineering - Industrial Engineering and Management
Supervisors
Examiners
Available from: 2023-05-15 Created: 2023-05-15 Last updated: 2023-05-15Bibliographically approved

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CiteExportLink to record
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Citation style
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