Statistics Final Project

Four parts. All needs to be in excel, except the Conclusion which can be on a word document.

Project Scenario

As a recent graduate, you have been looking for jobs throughout New York State. Last week, you received a job offer from a company that is located in Philadelphia. After careful consideration, you decided to accept this job offer. As a result, you have to sell your current home in Latham to prepare for the move.

You contact a real estate agent to begin the process of selling your current home. You provide the following information to the agent: your home is 2235 square feet, has 2.5 baths, and 3 bedrooms. There is a 4th bedroom that you converted to a study but can easily be converted back to a bedroom. In addition, the basement is finished and has a half bath; therefore, it may serve as an additional bedroom. The real estate agent suggests that you list your house for $305,000.

You want to make sure that the real estate agent lists your house at a price consistent with the other houses for sale in your town. In order to verify this information, you go to the Times Union classifieds and look at all the homes listed for sale in Latham that have between 3 and 5 bedrooms. We take a simple random sample of 30 of these homes and summarize the data in a table, which is attached to this assignment. We will use this data to perform a number of calculations and make a conclusion about whether or not the real estate agent has the house listed at a fair price based on the data that you collected.

Project Calculations

Part 1:

Descriptive Statistics -Only for the Price

1. We need to Make a histogram of the price data. (Choose an appropriate number of intervals. You may have to try a few different choices.) && Include a title and label for each axis.
2. I need to Describe what the shape of the distribution and what the shape tells you about the prices.
3. I need to figure out What the mean and median price is.
4. Based on this distribution, we need to write is the mean or median a more appropriate measure of center for price? Explain. [Hint: The shape of the distribution will help us answer this question.]
5. We need to know What is the 5-number summary.
6. I need to know What is the IQR.
7. We need to state Are there any outliers? And What are them using the 1.5xIQR rule.
8. We need to Draw a box plot for the price data. Remember to scale and label the axis.

Project Calculations

Part II.

Correlation and Regression - Predicting a Listing Price

1. With EXCEl we need to illustrate a scatter plot of price vs. square feet for the sample data. I need to Plot square feet on the x-axis and price on the y-axis.
2. we then need to Use the scatter plot to describe the relationship (if any) between square feet and price.
3. With EXCEl we need to calculate the correlation coefficient and explain what it tells you about the relationship between square feet and price.
4. with EXCEL we need to calculate the least-squares regression line (trend line) for the data. Write the equation.
5. We need to Interpret the slope of the least-squares regression line. Specifically what does it tell you about the relationship between square feet and price?
6. Use the equation of the least-squares regression line from #4 so we can estimate how much you should charge for your home (which has 2,235 square feet). We need to figure out How does it compare with the price recommended by the real estate agent?

Part III.

Inferential Statistics - Testing a Mean Price and Estimating a Mean Price

Perform a t-test to determine if the average price of comparable homes in Latham is different than the $305,000 recommended by the real estate agent. Perform a two- sided t-test.

1. i need to state the hypotheses.
2. i need to state what assumptions are required for the test.
3. i need to Calculate the test statistic. (Use the Descriptive Statistics command on EXCEL to obtain the sample mean and standard deviation.)
4. I need to Calculate the p-value.
5. I need to Explain what the p-value means in this situation.
6. What is your decision if the significance level = 0.05?
7. i need to sum up a conclusion.

Part IV.

Conclusion

Sum up conclusion based on the data that you collected. Is the real estate agent listing appropriate for your house? Reference the calculations that you performed to support your conclusion.

Square Feet Price

1550 $329,744

1614 $259,000

1715 $295,100

1758 $309,500

1794 $282,900

1860 $296,950

1877 $219,000

1900 $349,900

1911 $374,900

1921 $314,360

1921 $314,360

2015 $369,900

2118 $395,342

2351 $321,900

1800 $209,900

2083 $275,000

2100 $309,900

2112 $317,750

2112 $317,750

2210 $279,699

2260 $295,500

2400 $239,900

2416 $374,900

2444 $331,900

2600 $369,900

3159 $463,055

3200 $479,000

3200 $470,000

2580 $389,900

3300 $559,000