FOREIGN TRADE UNIVERSITY ECONOMETRICS ASSIGNMENT What affects people’s choices of purchasing apartment? Table of Contents Introduction 3Methodolody . 4Econometrics ModelI.Model 4II.Variables meaning1.Specific explanations of variables 42.Data descriptions . 5III.Results1.Running Model . 72.Testing Model . 7a.Testing Normality 7b.Testing Multicollinearity 8c.Testing Heteroskedasticity 9d.Testing Autocorrelation . 11e.Testing Specification Bias . 11IV.Conclusions1.Final Regression Model . 122.Explanation . 12V.Sugesstions . 13Appendix . 14INTRODUCTION Housing nowadays seems to be a never-ending problem of society due to the rapid growth of population while lands are limited. It leads to an obvious result that the prices of real estate, especially in big cities like Ho Chi Minh City or Hanoi, go up and down unstably. The fluctuation of real estate price confuses customers, who are largely newly married couples seeking for their own nests. Since the scarcity of usable areas are still questioning land planners, a lot of sensitive investors start investing in apartments, which seems to be the best solution to housing problems at the moment. Apartment brings a lot of advantages to both contractors and customers: modest area required, cheaper cost, more people contracting at the same time, better security To figure out what affects the price of an apartment, we have done a research on which factors the price is dependent to bring a clearer view and support to everyone who is planning to buy an apartment. The question given is: “Which elements affecting Hanoi’s apartment price?”