Question

What is the effect of interaction between location, pool existence, and distance from city center on the house price?

-Are these supposed to be all together? Or analyzed as separate factors?

Location	Pool	Distance from City Center	House Price
A	No	More than 10 miles	250000
A	No	More than 10 miles	262000
A	No	More than 10 miles	258000
A	No	More than 10 miles	266000
A	No	More than 10 miles	274000
A	No	More than 10 miles	282000
A	No	More than 10 miles	290000
A	No	More than 10 miles	267500
A	No	More than 10 miles	275500
A	No	More than 10 miles	283500
A	No	More than 10 miles	291500
A	Yes	More than 10 miles	269000
A	Yes	More than 10 miles	293200
A	Yes	Less than 10 miles	270700
A	Yes	Less than 10 miles	278700
A	Yes	Less than 10 miles	297200
A	Yes	Less than 10 miles	274700
A	Yes	Less than 10 miles	282700
A	Yes	Less than 10 miles	301200
A	Yes	Less than 10 miles	199000
A	Yes	Less than 10 miles	303700
A	Yes	Less than 10 miles	322200
A	Yes	Less than 10 miles	299700
A	Yes	Less than 10 miles	307700
A	No	Less than 10 miles	240000
A	No	Less than 10 miles	349200
A	No	Less than 10 miles	326700
A	No	More than 10 miles	334700
B	No	More than 10 miles	274700
B	No	More than 10 miles	282700
B	No	More than 10 miles	301200
B	No	More than 10 miles	278700
B	No	More than 10 miles	303700
B	No	More than 10 miles	322200
B	No	More than 10 miles	299700
B	No	More than 10 miles	307700
B	No	More than 10 miles	330700
B	No	More than 10 miles	349200
B	No	More than 10 miles	326700
B	No	More than 10 miles	334700
B	No	More than 10 miles	304700
B	No	More than 10 miles	312700
B	No	More than 10 miles	331200
B	No	More than 10 miles	308700
B	Yes	More than 10 miles	389200
B	Yes	Less than 10 miles	366700
B	Yes	Less than 10 miles	374700
B	Yes	Less than 10 miles	344700
B	Yes	Less than 10 miles	394700
B	Yes	Less than 10 miles	444700
B	Yes	Less than 10 miles	494700
B	Yes	Less than 10 miles	544700
B	Yes	Less than 10 miles	594700
B	Yes	Less than 10 miles	605700
B	Yes	Less than 10 miles	655700
B	Yes	Less than 10 miles	705700
C	No	More than 10 miles	180000
C	No	More than 10 miles	167000
C	No	More than 10 miles	185600
C	No	More than 10 miles	189200
C	No	More than 10 miles	192800
C	No	More than 10 miles	196400
C	No	More than 10 miles	200000
C	No	More than 10 miles	210000
C	No	More than 10 miles	210000
C	No	More than 10 miles	210000
C	No	Less than 10 miles	178000
C	No	Less than 10 miles	210000
C	No	Less than 10 miles	210000
C	No	Less than 10 miles	210000
C	No	Less than 10 miles	210000
C	No	Less than 10 miles	210000
C	No	Less than 10 miles	210000
C	No	Less than 10 miles	233000
C	No	Less than 10 miles	233000
C	No	Less than 10 miles	233000
C	No	Less than 10 miles	233000
C	No	Less than 10 miles	233000
C	Yes	Less than 10 miles	233000
C	Yes	Less than 10 miles	211000
C	Yes	Less than 10 miles	221000
C	Yes	Less than 10 miles	189000
C	Yes	Less than 10 miles	221000
C	Yes	Less than 10 miles	221000
D	No	Less than 10 miles	588000
D	No	Less than 10 miles	588000
D	No	Less than 10 miles	588000
D	No	Less than 10 miles	588000
D	No	Less than 10 miles	588000
D	Yes	Less than 10 miles	588000
D	Yes	Less than 10 miles	499000
D	Yes	Less than 10 miles	588000
D	Yes	Less than 10 miles	636000
D	Yes	Less than 10 miles	636000
D	Yes	Less than 10 miles	684000
D	Yes	Less than 10 miles	684000
D	Yes	Less than 10 miles	732000
D	Yes	Less than 10 miles	782000
D	Yes	Less than 10 miles	782000
D	Yes	Less than 10 miles	830000
D	Yes	More than 10 miles	880000
D	Yes	More than 10 miles	880000
D	Yes	More than 10 miles	928000
D	Yes	More than 10 miles	978000
D	Yes	More than 10 miles	978000
D	Yes	More than 10 miles	1026000
D	Yes	More than 10 miles	996000
D	Yes	More than 10 miles	678000
D	Yes	More than 10 miles	936000
D	Yes	More than 10 miles	906000
D	Yes	More than 10 miles	760000
D	Yes	More than 10 miles	846000

Answer 1

We can make a regression model for the analysis of this data. The regression model which has House price as a Dependent variable and other factors as independent variables.

Each independent variable has levels like Pool Yes or No has 2 levels, which can be transformed as dummy variable 1 and 0 for each.

Similarly, for Location, we have 4 levels A, B, C and D.

Distance has 2 levels too, less and more than 10 miles. We can use dummy variable here too. 0 and 1 for each.

These 3 factors are to be used simultaneously for making the regression model.