Name: Mrunali Nagdeve

Section: MBA Fintech

UID: 2022-2312-0001-0002
Roll No: MBA22K23
Subject: SPSS

Case Study
Lodha Group Real Estate Developers

 Problem Statement :

To develop Sales forecasting model for Lodha group real estate

developers on basis of selling price of a house dependent on five
different parametres.

 Variables :

Dependent Variable : Selling Price

Independent Variable : 1. Cost Price

2. Area (sq. ft)
3. Bedrooms
4. Location
5. Floor

 Statistical Test :

For the given case, Correlation & Regression test used.

 Output :
  Correlation :

Descriptive Statistics

Mean Std. Deviation N

Selling Price 1513.3333 667.20811 15
Cost Price 1113.3333 604.58565 15
Area sq.ft 1306.6667 332.66600 15
Bedrooms 2.5333 .63994 15
Location 3.0000 .84515 15
Floor 2.6667 1.17514 15

Correlations

Selling price Price Area sq.ft Bedrooms Location Floor

Pearson Correlation 1 .968** .893** .760** .614* -.381
Selling
Sig. (2-tailed) .000 .000 .001 .015 .161
Price
N 15 15 15 15 15 15
Pearson Correlation .968 **
1 .887 **
.774 **
.475 -.345
Cost Price Sig. (2-tailed) .000 .000 .001 .073 .208
N 15 15 15 15 15 15
Pearson Correlation .893 **
.887** 1 .922 **
.534* -.231
Area sq.ft Sig. (2-tailed) .000 .000 .000 .041 .407
N 15 15 15 15 15 15
Pearson Correlation .760 **
.774** .922 **
1 .396 -.222
Bedrooms Sig. (2-tailed) .001 .001 .000 .144 .427
N 15 15 15 15 15 15
Pearson Correlation .614 *
.475 .534 *
.396 1 -.647**
Location Sig. (2-tailed) .015 .073 .041 .144 .009
N 15 15 15 15 15 15
Pearson Correlation -.381 -.345 -.231 -.222 -.647** 1
Floor Sig. (2-tailed) .161 .208 .407 .427 .009
N 15 15 15 15 15 15
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).

 Interpretation :
 From the above table, it results that;

Pearson’s correlation value is r = 0.983.

Which indicates that there is strong relationship between comp. act and cust bse
of pizza hut product.

Pearson’s correlation value is r = -0.036.

Which indicates that there is negative relationship between comp. act and outlets
of pizza hut.

 Regression :

Variables Entered/Removeda

Model Variables Variables Method

Entered Removed
Floor, . Enter
Bedrooms,
1 Location,
Price, Area
sq. feetb

a. Dependent Variable: Selling price

b. All requested variables entered.

Model Summary

Model R R Square Adjusted R Std. Error of

Square the Estimate
1 .986a .972 .957 138.76270

a. Predictors: (Constant), Floor, Bedrooms, Location, Price,

Area sq. feet

 Interpretation:
 2
r value = 97.2% amount of variation in DV due to change in predicators i.e Floor,
Bedrooms, Location, Price, Area sq. feetb
It is also inferred that r 2 value indicates 97.2% regression model is perfectly fit’

ANOVAa

Model Sum of df Mean Square F Sig.

Squares
Regression 6059037.555 5 1211807.511 62.934 .000b
1 Residual 173295.778 9 19255.086
Total 6232333.333 14

a. Dependent Variable: Selling price

b. Predictors: (Constant), Floor, Bedrooms, Location, Price, Area sq. feet

 Interpretation:

r value = 0.000001
LOS = 0.05

r value < LOS

0.00001 < 0.05
As per above interpretation we can conclude that, Result is significant.
 Coefficientsa

Model Unstandardized Coefficients Standardized t Sig.

Coefficients
B Std. Error Beta
(Constant) -293.942 290.209 -1.013 .338
Price .978 .160 .887 6.128 .000
Area sq. feet -.039 .538 -.020 -.073 .944
1
Bedrooms 9.953 178.748 .010 .056 .957
Location 203.084 80.541 .257 2.521 .033
Floor 50.534 50.870 .089 .993 .346

a. Dependent Variable: Selling price

 Interpretation:

Unstandardised Coefficients:
Y = a + bx
Y = -293.942 + 0.978(Price) - 0.039( Area sq. feet ) + 9.953(Bedrooms) +
203.084(Location)+50.534(Floor)

Standardised Coefficients:
0.887 this is the highest value which implies Price is the important variables than any
other variable.