Prof Double R

Selling Price and Area Analysis for D.M. Pan National Real Estate Company 2

Report: Selling Price and Area Analysis for D.M. Pan National Real Estate Company

Introduction

In this report we are going to analyze sample data with sample size 30, from the new England region and compare the analysis to the national.

The purpose of this report is to establish the relationship between square feet and listing prices of real estate homes in New England region.

Generate a Representative Sample of the Data

The simple random sample of 30 was drawn from the population 1000 in the region of New England. The mean listing price for the sample is 393140 while median 360,000. The listing price has standard deviation of the 126714.

The sample had mean square feet of 2478 while median square feet is 2205. The square feet standard deviation is 1083.

Analysis of the Sample

A comparative analysis of the regional sample and the national market was conducted using the mean, median and standard deviation.

The mean listing price of the sample of 393,140 was greater than mean national market of 342,365. Moreover, the sample median listing price of 360,000 and standard deviation of 126714 were greater than national market with the median of 318714 and standard deviation of 125,914.

Similarly, mean, median and standard deviation of the sample is greater than national market values for the same statistics.

To ensure the sample is random, a column of random numbers was created in excel using

=rand () excel function for all the 1000 New England row. The data was the sorted using the random column from the smallest to the largest. Using the sorted data, the first 31 rows including the headers was extracted to obtain a random sample data for the new England region.

Generate Scatterplot

Observe Patterns

The X variable is the square feet variable and the y variable is the listing price.

Square feet is the useful variable since it’s the predictor variable.

From the scatterplot, there is a positive correlation between the x and y variable indicated by the trendline.

The shape of the trendline is a linear relationship.

If I had 1800 sq.ft, the listing price as determined by the equation on the scatterplot would be given as.

Y=114.38x+109724

Y=114.38(1800) +109724

Y= 206640+109724

Y=316364

Therefore, I would list it at 316364.

There were 4 outliers in the sample. These include 5660,4162,6204 and 3747 square ft.

The outliers appeared because, from the sample many homes in the New England region have square feet between 1500 and 3000. The chances of selecting square feet of value above 3000 at random is very minimal. Therefore, the value above 3000 square feet is treated as an outlier in the sample. The outliers represent the number of homes with square feet above 3000.

Relationship between Listing Price and Square feet in New England

1991 1748 2013 2214 1706 3747 5660 2018 4162 1969 6204 1892 2346 2265 2566 2226 2475 1956 1740 1703 2015 2455 2265 1744 2293 2280 2556 2196 1798 2131 370000 305000 329000 347000 317200 489900 803400 378100 523600 363700 844500 341300 358600 388700 379100 361400 381900 342500 307400 311000 333600 351800 379000 331300 338000 344200 402200 397300 299700 373800

Median Square feet

Median Listing Price