Terro’s real-estate is an agency that estimates the pricing of houses in a certain locality. The pricing is concluded based on different features / factors of a property. This also helps them in identifying the business value of a property. To do this activity the company employs an “Auditor”, who studies various geographic features of a property like pollution level (NOX), crime rate, education facilities (pupil to teacher ratio), connectivity (distance from highway), etc. This helps in determining the price of a property.
Your job, as an auditor, is to analyze the magnitude of each variable to which it can affect the price of a house in a particular locality. To do the analysis, you are expected to solve these questions:
- Generate the summary statistics for each variable in the table. (Use Data analysis tool pack). Write down your observation.
- Plot a histogram of the Avg_Price variable. What do you infer?
- Compute the covariance matrix. Share your observations.
- Create a correlation matrix of all the variables (Use Data analysis tool pack). a) Which are the top 3 positively correlated pairs and b) Which are the top 3 negatively correlated pairs.