Analyzing data for Business Statistics
Case Analysis and Managerial Report
Directions: Follow the directions below and use the Excel file attached to this assignment link. You are to turn in via Blackboard Assignment link both a MS Word document for the Managerial Report and an Excel file showing your work.
South Texas Estate Properties, Inc., is a real estate firm located in Galveston, Texas. The company, which advertises itself as "expert in the real estate market," monitors condominium sales by collecting data on location, list price, sale price, and number of days it takes to sell each unit. Each condominium is classified as Gulf View if it is located directly on the Gulf of Mexico or No Gulf View if it is located on the bay or a golf course, near but not on the Gulf. Sample data from the Multiple Listing Service in Galveston, Texas, provided recent sales data for 105 Gulf View condominiums and 80 No Gulf View condominiums. Prices are in thousands of dollars. The data are available in the attached Excel file.
Managerial Report
You are to prepare a managerial report summarizing the results of your analysis (details listed below) data described above. This document should be professionally written, meaning in narrative format using proper grammar and be spelling error free. Provide the report as an MS Word document.
1. Calculate the following descriptive statistics (note your calculations must be shown in your Excel file - template provided):
a. For each of the three variables (GV List, GV Sale, GV Days) for the 105 Gulf View condominiums and for the 80 No Gulf View condominiums (NGV List, NGV Sale, NGV Days): mean, median, standard deviation, minimum, maximum, skewness, range and coefficient of variation.
b. Calculate the covariance and correlation coefficient between the sales price and the number of days the condominiums were on the market for the gulf view and no gulf view condominiums.
c. Determine the percent difference between the average list price and the resulting sales price for both types of condominiums.
d. Then include your resulting statistics in your managerial report (MS Word document) along with a narrative summary of your findings. Your report should compare your summary results between the two types of condominiums. In other words, you want to discuss any specific statistical results that would help a real estate agent understand the condominium market in Galveston.
2. Develop a 99% confidence interval estimate of the population mean list price, sales price and population mean number of days to sell for Gulf View condominiums. Interpret your results in narrative form. Note, you need to first determine if you are to use the standard normal distribution (z-value) or the t-distribution.
3. Develop a 99% confidence interval estimate of the population mean list price, sales price and population mean number of days to sell for No Gulf View condominiums. Interpret your results in narrative form.Note, you need to first determine if you are to use the standard normal distribution (z-value) or the t-distribution.
4. Assume the branch manager requested estimates of the mean selling price of Gulf View condominiums with a margin of error of no more than $30 and the mean selling price of No Gulf View condominiums with a margin of error of no more than $5. Using 95% confidence and assuming the sample standard deviation is a close approximation of the population standard deviation, how large should the sample sizes be? (Hint: You will need to use the formula for calculating sample size).
5. (BONUS Question):South Texas Estate Propertiesjust signed contracts for two new listings: a Gulf View condominium with a list price of $750,000 and a No Gulf View condominium with a list price of $300,000. Based upon the historical findings, what is your estimate of the final sales price for each of these units? How many days do you expect it to take for each unit to sell?
Data file abbreviations:
GV List The list price of a Gulf View condominium
GV Sale The sale price of the Gulf View condominium
GV Days The number of days to sell the Gulf View condominium
NGV List The list price of a No Gulf View condominium
NGV Sale The sale price of the No Gulf View condominium
NGV Days The number of days to sell the No Gulf View condominium
EXCEL functions:
Mean: =average(highlight column of numbers)
Median: median(highlight column of numbers)
Standard deviation: =stdev.s(highlight column of numbers)
Minimum: =min(highlight column of numbers)
Maximum: =max(highlight column of numbers)
Skewness: =skew(highlight column of numbers)
Range: no function available; you need to calculate it
Coefficient of variation: no function available; you need to calculate it
Covariance: =covariance.s(first array, second array)
Correlation Coefficient: =correl(first array, second array).
Attachment:- Case_Analysis_Fall_2016_Data_Set.xlsx