1. Using theMS-Excel processor, calculate:
2. TheAverage Price Per Square Foot for houses in the two neighborhoods
3. The Standard Deviation of the Average Price per Square Foot
4. List at least two reasons that you think that the Average price of houses and the Average Price per Square Foot in one neighborhood will be different from the other neighborhood in the file (You may use personal knowledge of the neighborhoods).
5. For each neighborhood, establish a98% Confidence Interval for theAverage Price Per Square Foot of the houses
6. Based on your results, do have any reason to believe that the Average Price per Square Foot is significantly higher than the Average Price per Square Foot in the other neighborhood.

Write a report on your results.Be sure to label your variables properly before you use the file.If you submit a report with variables that are not properly labeled, you will lose substantial points.

Please be sure to edit your tables properly.

PROBLEM #2

The Table below is a summary from a neighborhood survey. Which of the neighborhoods would you consider the lowest income neighborhood? Explain your answer?

TABLE 1

CROWNHEIGHTS,EAST NEW YORK

PROSPECT

HEIGHTS / FLATBUSH

BED-STUY / BUSHWICK

INCOME

Count

%

Count

%

Count

%

LESS THAN $15,000

45

19.7%

5

7.8%

11

8.3%

$15,000 - $24,999

69

30.1%

25

39.1%

38

28.6%

$25,000 - $34,999

64

27.9%

18

28.1%

40

30.1%

$35,000 - $44,999

27

11.8%

6

9.4%

21

15.8%

$45,000 OR MORE

24

10.5%

10

15.6%

23

17.3%

1. You must create a new table in MS-Excel to calculate the Midpoints of the Income ranges and calculate the Estimated Weighted Average Income for each of the neighborhoods before you can make a valid decision.
2. For each of the neighborhoods, establish a 98% Confidence Interval to estimate the mean income.
3. Do you observe any overlaps in the estimated mean incomes between any two neighborhoods?
4. What do you think is the interpretation of the overlaps of the Confidence Intervals?