One of the biggest purchases we make in our lifetimes is for a home. Questions that we

Question:

One of the biggest purchases we make in our lifetimes is for a home. Questions that we all ask are these:
• How much should I spend for a particular home?
• How many bathrooms are there?
• How long should I expect a home to be on the market?
• What is the cost per square foot?
The purpose of this project is to help you make an informed decision about housing values. This will help to ensure you receive a good deal when purchasing a home.
(a) Go to a real estates website such as www.realtor.com or www.zillow.com and enter the particular zip code you are interested in moving to. Randomly select at least 30 homes for sale and record the following information:
• Asking price
• Square footage
• Number of days on the market
• Cost per square foot (asking price divided by square footage)
(b) For each of the variables identified, determine a 95% confidence interval. Interpret the interval.
(c) Now randomly select 30 recently sold homes and determine the percentage discount from the asking price. This is, determining discount by computing asking price - closing price asking price.
(d) Determine a 95% confidence interval for percentage discount. Interpret the interval.
(e) For the type of house you are considering (such as a 2400 square foot 3-bedroom/2-bath home), identify at least 20 homes that are for sale in the neighborhood you are considering. Compute a 95% confidence interval for the asking price of this type of home.
(f) Write a report that details how much you should expect to pay for the type of house you are considering.