1.

First enter the Real estate data (text book data set 1) into SPSS and then select a sample of size, n = last two digits of your ID and answer the exercises. Select an appropriate class interval and organize the Selling price into a frequency distribution.
II.

I.

Compute the Mean, Median, Mode, Standard Deviation, Variance, Quartiles, 9th Decile, 10th Percentile and Range of Selling price from the raw data of your sample and interpret. Develop a histogram (Using question 1) for the variable selling cost. Develop a Pie chart and a Bar diagram for the variable Township. Develop a Box plot for the variable Distance. What information can you give from these plots?

III.

IV. V.

Note: Comment on all your findings, charts and diagrams.

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Answer to the question No.1

II. Computation of the Mean, Median, Mode, Standard Deviation, Variance, Quartiles, 9th
Deciles, 10th Percentile and Range of Selling price from the raw data of sample, n=64 :

From SPSS output, we get,

Selling Price in TK. 000 (Thousand) N Mean Median Mode Std. Deviation Variance Percentiles 10 20 25 30 40 50 60 70 75 80 90 Valid Missing

64 0 2192.659 2090.500 1880.3(a) 462.2481 213673.30 4 1707.000 1807.000 1880.300 1910.550 2050.100 2090.500 2220.100 2415.350 2468.050 2540.300 2930.350

Interpretation
Mean: On average the selling price of homes sold in Denver, Colorado is about TK. 2192.659 (Thousands). Median: 50% of the selling price sold in Denver, Colorado is less than TK. 2090.500 (Thousands) and 50% of the selling price is above TK. 2090.500 (Thousands). Mode: The maximum number of selling price of homes is TK1880.3 (Thousands) which appears more than any other selling price. In other words the homes has been sold maximum in the price of TK. 1880.3 (Thousands).

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Std. Deviation: The actual amount of selling price of homes on average differs/varies from the mean selling price TK2192.659thousands by TK462.2481 (Thousands). Variance: The average variation of the selling price is Tk. 213673.304 (thousands). Range: The range of selling price of homes is TK. 2199.4 (Thousands) where highest amount of selling price of homes is TK.3450.3 (Thousands) and lowest amount of selling price of homes is TK.1250.9 (Thousands). Quartiles: The selling price of first 25% homes is equal or less than TK. 1880.300 thousands and 75% homes is higher than TK. 1880.300 thousands that is presented as the first quartile, Q1 = TK. 1880.300 thousands. The median amount of selling price of homes is given by second quartile, Q2 =TK. 2090.500 (Thousands) i.e. the selling price of the 50% homes is less than TK2090.500 (Thousands) and the selling price of the other 50% homes is higher than TK2090.500 (Thousands) . The Selling price of the 75% homes is equal or less than TK. 2468.050 thousands and 25% homes is higher than TK. 2468.050 thousands, denoted as third quartile, Q3 =TK. 2468.050 thousands. 9th Deciles: The selling price of the 90% homes sold in Denver, Colorado is equal or less than TK. 2930.350 (Thousands) and 10% homes are above TK. 2930.350 (Thousands) . 10th Percentile: The selling price of the first 10 percent homes is equal or less than Tk. 1707.000 thousands i.e. given by

P10

or

D1 =Tk. 1707.000

and 90 % homes are above it. IV.

Pie chart for the variable Township Figure: Pie chart for the variable Township

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Pie chart for the variable Township

Gulshan Uttara DOHS Dhanmondi

12.5% 20.31%

Banani

25.0% 17.19%

25.0%

Comment: From the pie chart we see that, 25.0% of the Township is in Dhanmondi, 25.0% of the Township is in DOHS, 20.31% of the Township is in Gulsan, 17.19% of the Township is in Uttara, and 12.5% of the Township is in Banani. We also see that, the largest percentage of Township involves with Dhanmondi, DOHS and the lowest percentage of Township involves with Banani.

Figure: Bar chart for the variable Township

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20

15

Frequency

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25.0% 20.31% 25.0%

17.19% 12.5%

0 Gulshan Uttara DOHS Dhanmondi Banani

Township

Comment: From the Bar chart we see that, 25% of the Township is in Dhanmondi, 25% of the Township is in DOHS, 20.31% of the Township is in Gulsan, 17.19% of the Township is in Uttara, and 1205% of the Township is in Banani. We also see that, the largest percentage of Township involves with Dhanmondi, DOHS and the lowest percentage of Township involves with Banani.

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V. Box plot for the variable Distance Figure: Box plot of Distance

30.0

25.0

20.0

15.0

10.0

5.0

Distance

__

Comment: There is no outlier. The median distance is 15 and about 50 percent distance is between 11 to19.

2. For the variable Selling price

I.

Determine the coefficient of skewness. Is the distribution positively or negatively skewed?

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II.

Develop a Box plot. Are there any outliers

Answer to the question No.2

I.

From SPSS output, we get,

Statistics Selling Price in TK. 000 (Thousand) N Valid Missing Skewness Std. Error of Skewness Kurtosis Std. Error of Kurtosis 64 0 .665 .299 .280 .590

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Selling Price in TK. 000 (Thousand)

12

10

Frequency

2 Mean = 2192.659 Std. Dev. = 462.2481 N = 64 1000.0 1500.0 2000.0 2500.0 3000.0 3500.0

Selling Price in TK. 000 (Thousand)

__

Comment: The distribution is positively skewed. Since mean is the largest and mode is the smallest average.

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ii. Box plot for the variable Selling price

Figure: Box plot of Selling price

3500.0

17

3000.0

2500.0

2000.0

1500.0

1000.0

Selling Price in TK. 000 (Thousand)

__

Comment: There is one outlier that is 17.

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3. Refer to the Real Estate data, which reports information on the homes sold in Denver, Colorado, last year. [Chapter-9] I. Develop a 95 percent confidence interval for the mean selling price of the homes and interpret. II. Develop a 95 percent confidence interval for the mean distance the home is from the center of the city and interpret. III. Develop a 95 percent confidence interval for the proportion of homes with an attached garage and interpret.

Answer to the Question No.3

I.

For 95 percent confidence interval for the mean selling price of the homes One-Sample Statistics
Std. Error Mean 56.5781

Using SPSS we get the following output as-

N Selling Price in TK. 000 (Thousand) 64

Mean 2169.038

Std. Deviation 452.6248

One-Sample Test One-Sample Test Test Value = 0 95% Confidence Interval of the Difference t Selling Price in TK. 000 (Thousand) 38.337 df 63 Sig. (2-tailed) .000 Mean Difference 2169.0381 Lower 2055.976 Upper 2282.100

So the 95% Confidence Interval for the mean selling price of the homes is ($2055.976, $2282.100).

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From the above table we have, Mean = 2169.038& Std. deviation 452.6248 The value of t at 95 % level of confidence & 63 df is 1.998 We know the confidence interval, CI = X t s = 2192.659 115.446 = ($1977.193, $2208.126) which is the 95% Confidence n

Interval for the mean selling price of the homes. Interpretation: Probability ($1977.193 , $2208.126) = 0.95 The mean selling price of the homes ranges from $1977.193 to $2208.126 we are 95% confident about it. In other words, this interval ($2077.193, $2308.126) contains the population mean with probability 0.95. If we take a sample of Selling Price 100 times this interval will contain the population 95 times. II. 95 percent confidence interval for the mean distance the home is from the center of the city: Using SPSS, we get the following output asOne-Sample Statistics
Std. Error N Distance 64 Mean 14.91 Std. Deviation 5.291 Mean .661

One-Sample Test

Test Value = 100 Mean t df Sig. (2-tailed) Difference

95% Confidence Interval of the Difference Lower -86.42 Upper -83.77

Distance

-128.670

63

.000

-85.094

95 percent confidence interval for the mean distance the home is from the center of the city (86.42, -83.77) From the table we have, Mean=14.91& Std. deviation = 5.291

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The value of t at 95 % level of confidence & 63df is 1.998 We know the confidence interval, CI = X t s =14.91 (1.998)*( 5.291/7.94) = 14.91 1.33 = (-86.42, -83.77) n

Interpretation: Probability (-86.42 -83.77) = 0.95 The mean distance of the homes from the center of the city ranges from -86.42 miles to -83.77 miles we are 95 % confident about it. In other words, the interval (from -86.42 miles, -83.77miles) contains the population mean with probability 0.95. If we take a sample 100 times, this interval will contain the population 95 times. III. 95 percent confidence interval for the proportion of homes with an attached garage

Garage Attached
Cumulative Valid No Yes Total Frequency 23 41 64 Percent 35.9 64.1 100.0 Valid Percent 35.9 64.1 100.0 Percent 35.9 100.0

We know, the sample proportion of homes with an attached garage,

= X = 41/64 = 0.64 n
Thus we estimate 64 percent of the homes with an attached garage. We determine the 95 % Confidence Interval for the proportion of homes with an attached garage as

p (1 p ) =.641.96.64(1-.64)/64=.64 0.1176= .5224, .7576 n

Interpretation: The proportion of homes with an attached garage ranges from (52-76) and we are 95% confident about it.

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4. Refer to the Real Estate data, which report information on the homes sold in Denver, Colorado, last year. [Chapter-10] I. A recent article in the Denver Post indicated that the mean selling price of the homes in the area is more than $2200. Can we conclude that the mean selling price in the Denver area is more than $2200? Use the .01 significance level. What is the p-value? II. The same article reported the mean size was more than 2100 square feet. Can we conclude that the mean size of homes sold in the Denver area is more than 2100 square feet? Use the .01 significance level. What is the p-value? Answer to the question No.4 i. Hypothesis testing: Step1: State the Null Hypothesis (H0) and Alternative Hypothesis (H1) H0 : $ 2200 i.e.; mean selling price of homes in Denver is not more than $2200 H1 : > $ 2200 i.e.; mean selling price of homes in Denver is more than $2200 Step 2: select the level of significance Here, the level of significance is, = .01 Step 3: Determine the appropriate test statistic t-test statistic will be used here. Step 4: Formulate the decision rule If p-value < value (or calculated value is greater than critical value), H0 is rejected If p-value > - value (or calculated value is less than critical value), H0 is accepted Step 5: Select the sample, perform the calculations and make a decision From SPSS output, we get,
One-Sample Statistics Std. Error N Mean Std. Deviation Mean

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Selling Price in TK. 000 (Thousand)

64

2192.659

462.2481

57.7810

One-Sample Test

Test Value = 2200 99% Confidence Interval Mean t Selling Price in TK. 000 (Thousand) -.127 df 63 Sig. (2-tailed) .899 Difference -7.3406 of the Difference Lower -160.815 Upper 146.134

We get, p-value=.899/2=.449 Decision: Since the computed value of the test statistic (t= -.127) is less than the critical value (2.387) and P-value (.449) > (.01). So we accept H0. Comment: So, we can conclude that the mean selling price of homes in Denver is not more than 2200 ii. Hypothesis testing: Step1: State the Null Hypothesis (H0) and Alternative Hypothesis (H1) H0: 2100 H1: > 2100 Here, H0 = mean size of the homes sold in the Denver area is not more than 2100 square feet Here, H1 = mean size of the homes sold in the Denver area is more than 2100 square feet Step 2: select the level of significance Here the level of significance is, = .01 Step 3: Determine the appropriate test statistic t-test statistic will be used here. Step 4: Formulate the decision rule

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If p-value < - value, H0 will be rejected If p-value > - value, H0 will be accepted. Step 5: Select the sample, perform the calculations and make a decision From SPSS output,
One-Sample Statistics Std. Error N Size of the Home in Square Feet 64 Mean 2223.44 Std. Deviation 264.120 Mean 33.015

One-Sample Test

Test Value = 2100 99% Confidence Interval Mean t Size of the Home in Square Feet 3.739 df 63 Sig. (2-tailed) .000 Difference 123.438 of the Difference Lower 35.74 Upper 211.13

So, p-value = .001/2=.0005 Decision: Since P-value (0.0005) < (.01) and (Calculated value, value or tabulated value 2.387). So we reject H0.
3.739is

larger than the critical

Comment:
So, we can conclude that mean size of the homes sold in the Denver area is more than 2100 square feet.

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