Data analysis problem for finance 230 Here is the data. Gulf View Condominiums N
ID: 2624173 • Letter: D
Question
Data analysis problem for finance 230
Here is the data.
Gulf View Condominiums No Gulf View Condominiums List Price Sale Price Days to Sell List Price Sale Price Days to Sell 495.0 475.0 130 217.0 217.0 182 379.0 350.0 71 148.0 135.5 338 529.0 519.0 85 186.5 179.0 122 552.5 534.5 95 239.0 230.0 150 334.9 334.9 119 279.0 267.5 169 550.0 505.0 92 215.0 214.0 58 169.9 165.0 197 279.0 259.0 110 210.0 210.0 56 179.9 176.5 130 975.0 945.0 73 149.9 144.9 149 314.0 314.0 126 235.0 230.0 114 315.0 305.0 88 199.8 192.0 120 885.0 800.0 282 210.0 195.0 61 975.0 975.0 100 226.0 212.0 146 469.0 445.0 56 149.9 146.5 137 329.0 305.0 49 160.0 160.0 281 365.0 330.0 48 322.0 292.5 63 332.0 312.0 88 187.5 179.0 48 520.0 495.0 161 247.0 227.0 52 425.0 405.0 149 675.0 669.0 142 409.0 400.0 28 649.0 649.0 29 319.0 305.0 140 425.0 410.0 85 359.0 340.0 107 469.0 449.0 72 895.0 875.0 129 439.0 430.0 160 435.0 400.0 206 235.0 227.0 91 638.0 618.0 100 629.0 600.0 97 329.0 309.0 114 595.0 555.0 45 339.0 315.0 150 215.0 200.0 48 395.0 375.0 135 449.0 425.0 53 499.0 465.0 86 439.0 428.5 158 Prepare a managerial report the case study below. Data is on the Gulf Real Estate Properties: Case Problem 2 in Chapter 8, p. 3451. File: GulfProp Answer the questions provided in the case in the report. The purpose of the report is to use descriptive statistics for the agent to gain insight into the properties listed by Gulf. Include the following: Table of descriptive statistics; mean, median, mode, standard deviation, skewness, range, minimum, maximum. General Observations. Make a general statement about the statistics describing the data. Provide an interpretation of each of the variables. For example, you might say that the mean list price for condos with a view is $474K and highly variable ranging from X to Y. Which condominiums are more expensive, which are more variable, where are the least expensive? Are there any outliers? How long to sell and what is the difference in sale price vs. asking price? Provide the requested confidence intervals for questions 4 and 5. Solve for the sample size in question 6 using a margin of error of 40,000. The margin of error when n=40 is $59,600 for Gulf view condos and the margin of error for no view condos where n=18 is $21,800. You want to reduce the margin of error by increasing the sample size. Question 7 can be addressed by comparing the list price with the selling price across the samples.Explanation / Answer
a)
Here, we have a total of 40 gulf view condominium sample. There are three variables, i.e., list price, sale price and days to sell.
Descriptive Statistics: List Price
Below some descriptive statistics of List price are provided. Minimum and maximum list prices for Gulf View condominium are $170k and $975K. From the box plot, we say that middle 50% of the data lies between $334K and $551K. Average price of a Gulf View condominium is $474K, whereas 50th percentile point of price is $437K. From the histogram, we see that most of the prices are concentrated around $300K and $500K.
List Price ($K)
N
40
Mean
474
Standard Deviation
197
List Price ($K)
Min
170
Q1
334
Median
437
Q3
551
Max
975
Descriptive Statistics: Sale Price
Below are some descriptive statistics of Sale price. Minimum and maximum sale prices for Gulf View condominium are $165k and $975K. From the box plot, we say that middle 50% of the data lies between $315K and $523K. Average price of a Gulf View condominium is $454K, whereas 50th percentile point of sale price is $418K. From the histogram, we see that most of the prices are concentrated around $300K and $500K.
Sale Price ($K)
N
40
Mean
454
Standard Deviation
193
Sale Price ($K)
Min
165
Q1
315
Median
418
Q3
523
Max
975
Descriptive Statistics: Days to sell
Below are some descriptive statistics of Days to Sell. Minimum and maximum days of sale for Gulf View condominium are 28 days and 282 days. From the box plot, we say that middle 50% of the data lies between 73days and 136 days. Average days to sell of a Gulf View condominium is 106, whereas 50th percentile point of days to sell is 96. From the histogram, we see that most of the days to sell are concentrated around 30 to 150 days.
Days to Sell
N
40
Mean
106
Standard Deviation
52
Days to Sell
Min
28
Q1
72
Median
96
Q3
136
Max
282
b)
Here, we have a total of 18 no gulf view condominium sample. There different variables are measured, i.e., list price, sale price and days to sell.
Descriptive Statistics: List Price
Below some descriptive statistics of List price are provided. Minimum and maximum list prices for No Gulf View condominium are $148k and $322K. From the box plot, we say that middle 50% of the data lies between $182K and $238K. Average price of a No Gulf View condominium is $213K, whereas 50th percentile point of price is $213K. From the histogram, we see that most of the prices are concentrated around $150K and $250K.
List Price ($K)
N
18
Mean
213
Standard Deviation
49
List Price ($K)
Min
148
Q1
182
Median
213
Q3
238
Max
322
Descriptive Statistics: Sale Price
Below are some descriptive statistics of Sale prices. Minimum and maximum sale prices for No Gulf View condominium are $136k and $293K. From the box plot, we say that middle 50% of the data lies between $177K and $229K. Average price of a No Gulf View condominium is $203K, whereas 50th percentile point of sale price is $204K. From the histogram, we see that most of the prices are concentrated around $150K and $250K.
Sale Price ($K)
N
18
Mean
203
Standard Deviation
44
Sale Price ($K)
Min
136
Q1
177
Median
204
Q3
229
Max
293
Descriptive Statistics: Days to sell
Below are some descriptive statistics of Days to Sell. Minimum and maximum days to sell for No Gulf View condominium are 48 days and 338 days. From the box plot, we say that middle 50% of the data lies between 75days and 150 days. Average days to sell of a No Gulf View condominium is 136, whereas 50th percentile point of days to sell is 126. From the histogram, we see that mode of the days to sell is around 100 to 150 days.
Days to Sell
N
18
Mean
135
Standard Deviation
76
Days to Sell
Min
48
Q1
75
Median
126
Q3
150
Max
338
c)
From the above description, we can conclude that List prices and sell prices of No Gulf View Condominiums are 50% of Gulf View Condominiums. Also, number Days to sell a No Gulf View Condominiums are greater than that of Gulf View Condominiums. This clearly tells us that demand for Gulf View Condominiums are very high compared to No Gulf View Condominiums. Also, using two sample t-tests, we found that differences in price between No Gulf View and Gulf View are statistically significant.
d) Here, for Gulf View Condominiums market,
n=40
For Sales Price:
Mean= 454.2, Standard Deviation= 192.52
Standard Error= 30.44, t(0.025,39)=2.33
So, 95% confidence interval for Sales Price of Gulf View Condominiums is,
(454 - 30.44*2.33, 454 + 30.44*2.33) = ($383.26K, $525.19K)
For Days to Sell:
Mean= 106, Standard Deviation= 52.22
Standard Error= 8.26, t(0.025,39)=2.33
So, 95% confidence interval for Days to Sale of Gulf View Condominiums is,
(106 - 2.33*8.26, 106 + 2.33*8.26) = (86.75, 125.25)
We are 95% confident that, for a Gulf View Condominiums, Average sales price will be within $383.26K and $525.19K.
We are 95% confident that, for a Gulf View Condominiums, Average Number of Days to sell a Gulf View Condominiums will be within 86.75 days to 125.25 days.
e) Here, for No Gulf View Condominiums market,
n=18
For Sales Price:
Mean= 203.2, Standard Deviation= 43.89
Standard Error= 10.35, t(0.025,17)=2.46
So, 95% confidence interval for Sales Price of No Gulf View Condominiums is,
(203.2
List Price ($K)
N
40
Mean
474
Standard Deviation
197
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