Standardization of Regression Equation Parameters in the Case of Multiple Linear Regression for an Econometric Model Development to Determine the Price of Apartments

Abstract

This study examines the relationship between apartment prices in Romania and various influencing factors, for which we have constructed a model using multiple linear regression. This type of regression equation's parameters hold practical significance as they aid in establishing the regression equation. The form of the connection, specifically the parameters that define it, greatly influences our understanding of the connection between various quantified variables in the proposed model. By determining the regression function in this manner, we created a model that allows us to make predictions or draw conclusions based on the variables within the model. Microeconomic variables are crucial in influencing real estate price variations at the individual property level. These variables are more specific and relate to factors within the local market of Arad or the property itself. Some key microeconomic variables can influence real estate prices, which are important to ascertain using statistical tools.