Introduction:

In this report, we will look at a statistical analysis of four states California, New York, New Jersey, and Pennsylvania. We will explore how the size of the home, number of bedrooms, and number of bathrooms affect its price. How does the size, quantity of bedrooms, and bathrooms jointly affect its price. We will also look into if there is a big difference between states and the prices of homes.

Analysis:

How much does size of a home in CA influence price?

## P-value for slope (Size): 0.0004634439

How does the number of bedrooms of a home in CA influence its price?

## P-value for slope (Beds): 0.2547976

How does the number of bathrooms of a home in CA influence its price?

## P-value for slope (Baths): 0.004092305

How does the size, the number of bedrooms, and the number of bathrooms of a home in CA jointly influence its price?

## P-values for the slopes:
##       Size       Beds      Baths 
## 0.02585657 0.62393327 0.28389382

Are there significant differences in home prices among the four states (CA, NY, NJ, PA)? 

## ANOVA p-value for State: 0.0001482009

Conclusion:

Question 1: How much does home size influence price in California? The P-value = 0.000463, since the value of p is below 0.05 this shows a high correlation between size of the home and how much the price is. The size of a home is a strong predictor of the value of that home.

Question 2: How do the number of bedrooms influence prices in California? The P-value = 0.254, since that value is greater than 0.05 the number of bedrooms doesn’t show a high correlation towards the price of the home. When looking at a home the number of bedrooms doesn’t affect the value according to the p value.

Question 3: How do the number of bathrooms influence prices in California? The P-value = 0.00409 which is far below that 0.05 benchmark. This tells you the number of bathrooms is a significant indicator of the price of a home. According to the data bathrooms have a higher effect on price than the bedrooms.

Question 4: How do size, bedrooms, and bathrooms jointly influence home price? P-values for all the slopes are Size = 0.025 which tells you size is still a high indicator for price. Beds = 0.623 which means they don’t significantly affect the price. Baths = 0.283 which shows they don’t affect the price. When all three categories are presented together only the size significantly affects the price.

Question 5: Are home prices significantly different across states? P-value = 0.000148 which means there are significant differences among prices between states.

In Conclusion size is the biggest indicator for the price of a home. Bathrooms matter to price on their own, but not when size is included in the equation. Bedrooms are not an indicator of price. Multiple regression shows size was the only independent factor that affects price. State location significantly affects home prices