You are ready to buy a house. However, you wonder, "Do houses located near high-voltage power lines sell for more or less than the rest?"

Prepare for the Analytics / Data Science 201 test with quizzes and multiple-choice questions. Study smartly with detailed explanations to excel in your ADY201m exams!

The question of whether houses located near high-voltage power lines sell for more or less than those further away can effectively be addressed through regression analysis. This statistical method allows for the examination of the relationship between the proximity to power lines (an independent variable) and the selling price of houses (the dependent variable).

With regression analysis, you can quantify the impact of the distance from high-voltage power lines on house prices. By analyzing data points of various properties, it’s possible to determine trends and predict how much the selling price might differ based on their location. Through this technique, one can also control for other influencing factors, such as house size, number of bedrooms, or neighborhood characteristics, to isolate the effect of proximity to power lines specifically.

Other response choices have limitations. Qualitative analysis might provide insights, but it wouldn’t offer the quantitative measurement needed for determining price differences directly related to the proximity of power lines. Therefore, regression analysis is the most appropriate method for answering the question effectively.

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