NEED TO USE SPSS TO COMPLETE

1

BBS300 Empirical Research Methods for Business Murdoch University

TSA - 2018 Dr. Naser Alziyadat

Assignment 2 Due on 8 November before 23:55.

This Assignment is worth 20 marks after being rescaled from 100. Your solutions should be properly

presented, and it is important that you double-check your spelling and grammar and thoroughly

proofread your assignment before submitting. Instructions for assignment submission are presented

in the “Assignment 2” link and must be strictly adhered to. No marks will be awarded to assignments

that are submitted after the due date and time. All analyses must be carried out using SPSS, and no

marks will be awarded for assignment questions where SPSS output supporting your answer is not

provided.

Dataset to be used in the analysis

The dataset is provided in SAV format that can be run using SPSS. You can access the data file

(Resalestatemarket_1.SAV) from the LMS below Assignment 2 in Session 8. The following are the

details of the data:

1. Data was collected from the real estate market of a specific suburb in Australia.

2. Data consists of both scale and categorical/ordinal variables.

3. The description of the variables table is annexed to this file.

Useful resources to complete this assignment

1. The all the resources in seminars 1-7.

Questions and Marking Guidelines

Question Details Marks

1. A client wants to have her house listed for sale by a real estate agent. The client has no idea how to predict the house price. The agent informed her that the weekly rent usually predicts the house price. You want to check how well the weekly rent predicts the house price.

a. What technique are you going to use? Why?

b. List and define the assumptions that are needed to be considered before deciding to interpret the results of your analysis.

c. Provide the required assurance that your data have not breached the assumptions of that technique.

d. Regardless of the results you got relevant to the assumptions, interpret and report the results of the statistical technique in terms of the model/formula you have, the magnitude, coefficient(s), and the significance of the results.

Note: you need to paste the table(s) of the results in your word doc (answer file).

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12

8

10

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2. A client wants to have her house listed for sale by the real estate agent. The client has no idea how to predict the house price. The agent informed her that the house price is usually predicted by the number of bedrooms, number of bathrooms, weekly rent, rental return, area and condition of the house. You need to check how well those variables predict the house price.

a. What technique are you going to use? Why? b. List the assumptions that are needed to be considered before deciding to interpret the results of your analysis. c. Provide the required assurance that your data have not breached the assumptions of that technique. d. Regardless of the results you got relevant to the assumptions, interpret and report the results of the statistical technique in terms of the model/formula you have, the magnitude, coefficient(s), and the significance of the results. Note: you need to paste the table(s) of the results in your word doc (answer file).

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4

12

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3. Based on the results you got in your answer to question 2, the Licensee Manager of the real estate agency proposed to control/adjust for street appeal and age of the house before you enter the variables that were significantly associated with the house price (as per the results of your answers to Question 2).

a. What technique are you going to use? Why? b. Regardless of the results you got relevant to the assumptions, interpret and report the results of the statistical technique in terms of the model/formula you have, the magnitude, coefficient(s), and the significance of the results. Note: you need to paste the table(s) of the results in your word doc (answer file).

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15

4. Presentation marks  Structure, clarity, and tidiness of presented solutions/answers; and

 Correctness in spelling and grammar.

8

Total 100

Variable Descriptions

Price Selling price of house in $'000

Rooms Number of main rooms in the house

Lot Size Area of the block of land (lot) in square metres

Age Age of the house in years

Area Area of the house in square metres

Material Timber = 1, Veneer = 2, Brick = 3

To Train Distance of the house to the nearest train station (kilometres)

To Bus Distance of the house to the nearest bus stop (kilometres)

To Shops Distance of the house to the nearest shopping centre (kilometres)

Street Street appeal as evaluated by the real estate agency:

ranges from 0 (lowest appeal) to 10 (highest appeal)

Storeys Number of storeys or levels in the house

Style Traditional Style = 0, Non-Traditional Style = 1

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Bedrooms Number of bedrooms

Bathrooms Number of bathrooms

Kitchen Style of kitchen: Adequate = 0, Modern = 1

Heating Central or other heating system installed: No Heat = 0, Yes Heat = 1

AirCon Air conditioning installed: No AC (No AirCon) = 0, AC (Yes AirCon) = 1

Bay Views Proportion of views of the Bay from a prominent part of the property:

ranges from 0 = Nil views up to 1 = Full views

Suburb Three different suburbs: 1 = Suburb A, 2 = Suburb B, 3 = Suburb C

Weekly Rent $ Actual or estimated weekly rent in $.

Rental Return % Annual rate of return from rent income (Weekly rent x 52)/(Price in $'000) as a percentage (%)

Condition The condition of the house in general. Very Poor = 1, Poor = 2, Good = 3, Excellent = 4

Rental Status Vacant (available for rent) = 1; Rented (currently rented) = 2; Owner (occupied by owner) = 3