Prepare table that shows mean and standard deviattion

Assignment Help Applied Statistics
Reference no: EM131068256

Business Statistics Major Assignment-

In this assignment you will examine data used by a Real Estate investment advisor. She wants you to answer some specific questions put by clients about houses prices in the neighborhood encompassed by 4 suburbs around city of Melbourne. The data is contained in the file 'Real_Estate.xls' and contains the following columns (variables):

Variable Name



House Identity number


Selling Price of the house (in 000's)


Number of bedrooms


House Size (m2)


0=House without a Pool

1=House with a Pool


Distance from city centre (km)


Suburb number


0=House without a Garage

1=House with a Garage

1. Random Sample: Before you begin your analysis you are required to take a random sample of size 110 from the 170 cases in the file. Use the file Random_Sample_Generator-13-2.xls to do this. Your tutor will show you how this can be done in EXCEL. Answers to the questions below are to be based on your sample of 110 cases. Make sure to keep a safe copy of the sample you use since you cannot use Random_Sample_Generator-13-2.xls to reproduce it. Provide a printout of the data in your sample, with ID numbers in ascending order.

2. Summary table:

a) i) Prepare a summary table that shows the mean, standard deviation and 95% confidence interval for the mean of the following variables: Selling Price, Number of bedrooms, Size of house, Distance from city centre

ii) Use some of the information in (i) to describe a typical house in these suburbs.

b) i) Prepare a summary table that shows the mean and standard deviation of Price for houses in the 4 Suburbs according (subject) to the variable Bedrooms. Think carefully about the layout of the rows and columns of your table. As well as means and standard deviations you should also include the number of houses in each group. So each cell in your final table should contain the mean, the standard deviation and n, the number of houses in that group.

ii) Comment, in bullet point form, on the Price of any combinations for Suburb and Bedrooms variables (i.e. cells in the table).

3. A local real estate firm has told a client that the average Price of a house in Suburb 2 is $420,000.  You have been asked to evaluate this claim. Use a One Sample t Test for the Mean to evaluate the claim that the average price is $420,000.

4. Size and Price: One of the clients wants information on Size of houses as it relates to price.

a) First create a new variable (column) labelled Size Group which divides Size up into two size groups as follows:

Under 200 square meters


200 square meters and over


b) Produce suitable graphs or charts to help in providing the information requested on the Size of the house as it relates to Price.

c) Find 95% CI intervals for the small and large houses Price. Is there any interaction (overlap) between the two Confidence Intervals?  What does this tell you about the Prices for the two Sizes?

5. Produce a scatter plot of Price vs Size (Size should be on the horizontal axis). Make sure you label your axes properly and that your graph has an appropriate title.  Briefly describe the nature of the relationship between these two variables.

Use XL to carry out a regression analysis on these two variables. Copy the output into your assignment and use it to respond to the following:

a) Write down the regression equation.

b) State the R-Square value and the Standard Error and explain what they mean with respect to this data.

c) Write down the value of the gradient of the regression line and explain what it means in this case.

d) Is the constant or intercept value significant in this case?  How do you know this?

e) Briefly explain why you think this regression model is, or is not, a good model.

Price and Suburb indices:

a) Determine the Suburb indices for each suburb after regressing Price with Size of the house. Use the multiplicative model in calculating suburbs indices: Improved Predicted Price=Predicted Price (as a function of Size) × Suburb Index.

Hint: Use a similar technique to the time series technique that calculates seasonal indices.                                                               

b) Interpret the suburb indices in the context of the problem.

6. Using information from your analyses write a short concluding paragraph about house prices and sizes for different suburbs.

Attachment:- Assignment Data.rar

Reference no: EM131068256

The frequency distribution of daily high temperatures

Question: 1) Suppose that the frequency distribution of daily high temperatures in a city are normally distributed with a mean of 60 degrees. Suppose that roughly one day ever

What is the probability that only one of the questionnaires

Suppose that a marketing firm sends questionnaires to two different companies. Based on historical evidence, the marketing research firm believes that each company, independen

The data to the right compared the price of some kitchen

The data to the right compared the price of some kitchen staples at four different supermarkets located in the same city. Complete parts (a) through (d). Item    A    B    C 

Is the evidence sufficient to recommend treatment with cide

A home remedy of Apple cider is reported   to cure verrucas   by users on twitter.Most said it cured it, A few said it worked partially . No one said it did not work.  Is the

Write a memo to your boss on this topic

PSYC­463­: You are the manager for a medium size company. The owners of the company want to implement assessments into their employment procedures as well as with their curr

Bio stats practise

Should you have a cup of coffee to make you more alert when studying for a big test? A researcher is interested in studying the effect of caffeine, and he comes up with the fo

The manager of a large maintenance department

The manager of a large maintenance department in a manufacturing setting.  Discuss how the understanding of probabilities will be beneficial to you and the company. I woul

What proportion of full-grown female beagles

A full-grown female beagle was brought in for an exam and found to weigh 15 pounds. Based on the provided weight model, what proportion of full-grown female beagles weigh less


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd