It has been noted that swimming pools do nothing to
Question # 00552368
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Updated on: 06/26/2017 02:12 AM Due on: 06/26/2017
Use Real_Estate.xls file which consists of 100 homes purchased in 2015. It includes variables regarding the number of bedrooms, number of bathrooms, whether the house has a pool or garage, the age, size and price of the home, what the house is constructed from, and the appraisals in 2014 and 2015.
- ASSIGNED PROBLEM 1: It has been noted that swimming pools do nothing to increase value of a home. Use the Hypothesis_Tests_Two_Samples.xls file to conduct a hypothesis test for two independent samples to determine if the mean sales differs for homes with and without a pool. Use a .05 significance level. Describe your findings which includes stating the hypotheses, direction of the test, p-value, decision to reject the null or not, and the conclusion. Note that this requires an assumption that homes with a pool vs. those without are not much different otherwise (if those with a pool are in better locations, made of better materials, are newer and larger, then those homes will be worth more and it won’t have a thing to do with a pool. So for the sake of simplicity, let’s assume that the homes with vs. without a pool have similar variability in them.
- ASSIGNED PROBLEM 2: How different can two real estate agents be in their appraisals? Use the Hypothesis_Tests_Two_Samples.xls file to conduct a hypothesis test for paired samples and test if there is a difference in the mean appraisal prices given by these agents on the same homes. Use a .05 significance level. Describe your findings which includes stating the hypotheses, direction of the test, p-value, decision to reject the null or not, and the conclusion.
- ASSIGNED PROBLEM 3: If people are going to spend a lot on their homes by constructing them out of brick, are they going to take the plunge and get a swimming pool too? Use the Hypothesis_Tests_Two_Samples.xls file to conduct a hypothesis test of proportions to determine if the proportion of homes made of brick are more likely to have a swimming pool vs. homes made of other materials. Use a .05 significance level. Describe your findings which includes stating the hypotheses, direction of the test, p-value, decision to reject the null or not, and the conclusion.
- ASSIGNED PROBLEM 4: You might expect that homes with more bedrooms are worth more since they are probably larger, but is there more to the value (like location, construction, age, etc.).? Using the sample of 100 homes (in the data file), conduct a hypothesis test using Analysis of Variance to determine if there is a difference in the mean sale price of homes with 2 bedrooms vs. 3 bedrooms vs. 4 bedrooms vs. 5 bedrooms. Use a .05 significance level. Describe your findings which includes stating the hypotheses, direction of the test, p-value, decision to reject the null or not, and the conclusion. Since there are homes made of varying sizes at different locations and made of different material for this sample, it would be reasonable to assume that location and construction are not factors in this test.
Expectations: Copy & paste the Excel displays into a Word file if you can. Upload the Word file (or the Excel files) for credit. Comments in which you describe your findings should be included with each display. APA formatting is not required for weekly assignments but adhere to the rules of written English in your punctuation, grammar and spelling.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
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24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56 Bedrooms
4
4
3
2
2
2
5
2
3
4
4
2
5
4
2
3
4
5
3
5
4
4
5
5
2
2
2
3
2
2
2
5
3
2
4
4
5
3
5
3
3
4
3
4
3
5
3
3
3
5
5
3
3
5
5
4 Size
2,349
2,102
2,271
2,188
2,148
2,117
2,484
2,130
2,254
2,385
2,108
1,715
2,495
2,073
2,283
2,119
2,189
2,316
2,220
1,901
2,624
1,938
2,101
2,141
2,198
1,912
2,117
2,162
2,041
1,712
1,974
2,438
2,019
1,919
2,023
2,310
2,639
2,069
2,182
2,090
1,928
2,056
2,012
2,262
2,431
2,217
2,157
2,014
2,221
2,236
2,189
2,218
1,937
2,296
1,749
2,230 Age
8
7
6
6
10
2
7
6
2
3
4
5
1
6
2
7
2
1
5
4
8
4
6
9
5
5
7
10
7
7
1
5
7
1
5
9
4
5
9
9
4
7
3
5
3
2
4
8
4
8
7
8
1
6
9
10 Pool
No
Yes
Yes
Yes
Yes
No
Yes
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No
No
Yes
No
Yes
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
No
Yes
Yes
Yes
Yes
No
No
No
No
No
No
Yes
Yes
No
Yes
No
Yes
Yes
Yes
Yes
No
Yes Construction
Brick
Wood
Brick
Stucco
Stucco
Stucco
Brick
Stucco
Stucco
Wood
Brick
Wood
Wood
Brick
Brick
Stucco
Brick
Wood
Wood
Wood
Wood
Stucco
Brick
Brick
Brick
Wood
Wood
Brick
Brick
Brick
Brick
Stucco
Stucco
Brick
Wood
Stucco
Brick
Brick
Stucco
Brick
Stucco
Stucco
Wood
Wood
Stucco
Brick
Stucco
Wood
Stucco
Stucco
Brick
Brick
Stucco
Brick
Stucco
Stucco Garage
Yes
No
No
No
No
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes
Yes
No
Yes
No
No
Yes
Yes
Yes
Yes
No
Yes
Yes
No
Yes
Yes
No
Yes
Yes
Yes
Yes
Yes
No
No
Yes
Yes
Yes
No
Yes
Yes
No
Yes
Yes
Yes
Yes
No
Yes
No
Yes
No
Yes
Yes
No
Yes Baths
2
2
2
2.5
1.5
2
2
2.5
1.5
2
2
1.5
2
2
2
2
2
2.5
2
2
2
2.5
1.5
3
1.5
2
2
1.5
2
2
2
2
2
2
2.5
2
2.5
2
3
1.5
1.5
1.5
2
2
3
3
2.5
2
2
2
2
2
2
3
2
2 57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100 3
3
4
5
5
2
2
5
3
4
3
4
2
2
3
2
4
4
3
2
2
2
5
2
3
4
4
2
4
2
3
4
5
3
5
4
4
5
5
3
5
4
4
5 2,263
1,593
2,221
2,036
2,170
2,007
2,054
2,247
2,190
2,495
2,080
2,210
2,133
2,037
1,900
1,871
2,584
2,312
2,498
2,407
2,363
2,329
2,732
2,343
2,479
2,624
2,319
1,887
2,280
2,511
2,331
2,408
2,548
2,442
2,091
2,886
2,132
2,311
2,355
2,442
2,091
2,886
2,132
2,311 10
9
10
3
4
4
7
5
3
6
3
7
7
7
3
8
7
3
9
2
2
1
8
5
3
2
1
4
6
5
9
2
1
6
1
10
2
7
4
2
10
1
3
1 Yes
No
Yes
Yes
No
Yes
Yes
No
No
No
No
No
Yes
No
No
Yes
No
Yes
Yes
Yes
Yes
No
Yes
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No
No
Yes
No
Yes
Yes
Yes
No
Yes
Yes
Yes Brick
Brick
Stucco
Brick
Wood
Stucco
Brick
Stucco
Brick
Brick
Stucco
Stucco
Stucco
Brick
Stucco
Wood
Brick
Wood
Brick
Stucco
Stucco
Stucco
Brick
Stucco
Stucco
Wood
Brick
Wood
Brick
Brick
Stucco
Brick
Wood
Wood
Wood
Wood
Stucco
Brick
Brick
Wood
Stucco
Brick
Wood
Brick Yes
No
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes
No
Yes
Yes
No
Yes
No
Yes
No
No
No
No
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes
No
Yes
No
No
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
No
Yes
Yes 1.5
2.5
2
3
2.5
2
2
2
2
2
2
2
2.5
2
2
1.5
2
2
2
2.5
1.5
2
2
2.5
1.5
2
2
1.5
2
2
2
2
2.5
2
2
2
2.5
1.5
3
2
2.5
1.5
2
3 SalePrice Appraisal_1 Appraisal_2
263,000
237,000
249,000
182,000
164,000
156,000
242,000
219,000
228,000
214,000
194,000
186,000
140,000
127,000
131,000
245,000
223,000
216,000
300,000
298,000
304,000
272,000
249,000
244,000
221,000
202,000
204,000
267,000
245,000
243,000
292,000
269,000
282,000
209,000
193,000
183,000
271,000
250,000
260,000
246,000
228,000
219,000
194,000
180,000
185,000
281,000
261,000
253,000
173,000
161,000
164,000
207,000
193,000
189,000
199,000
186,000
188,000
209,000
196,000
194,000
252,000
237,000
249,000
193,000
182,000
173,000
209,000
197,000
205,000
320,000
309,000
318,000
173,000
164,000
159,000
187,000
178,000
182,000
257,000
245,000
240,000
233,000
223,000
225,000
180,000
172,000
170,000
234,000
225,000
236,000
207,000
199,000
189,000
248,000
239,000
249,000
166,000
160,000
154,000
177,000
171,000
176,000
183,000
178,000
173,000
216,000
210,000
214,000
312,000
304,000
298,000
200,000
195,000
197,000
273,000
267,000
264,000
206,000
202,000
212,000
232,000
228,000
217,000
198,000
195,000
203,000
205,000
202,000
194,000
176,000
174,000
179,000
308,000
305,000
296,000
269,000
267,000
272,000
225,000
224,000
220,000
172,000
171,000
173,000
217,000
217,000
215,000
193,000
193,000
203,000
236,000
236,000
224,000
172,000
173,000
180,000
251,000
253,000
243,000
246,000
248,000
255,000
147,000
148,000
144,000
176,000
178,000
182,000 Variable descriptions
Bedrooms = # of bedrooms
Size = square footage of home
Age = age of home in years
Pool = Yes or No
Construction = Brick, Wood, Stucco
Garage = Yes or No
Baths = # of baths
SalePrice = Price in 2015
Appraisal_14 = 2014 Appraisal
Appraisal_15 = 2015 Appraisal 228,000
166,000
189,000
290,000
270,000
154,000
222,000
210,000
191,000
254,000
207,000
210,000
294,000
176,000
224,000
125,000
237,000
164,000
218,000
192,000
126,000
221,000
295,000
245,000
199,000
240,000
263,000
188,000
221,000
175,000
253,000
155,000
187,000
179,000
188,000
227,000
174,000
188,000
294,000
179,000
188,000
227,000
174,000
188,000 231,000
169,000
192,000
296,000
276,000
158,000
228,000
216,000
197,000
263,000
214,000
218,000
306,000
183,000
234,000
131,000
249,000
173,000
230,000
203,000
133,000
234,000
313,000
261,000
212,000
256,000
281,000
202,000
238,000
189,000
273,000
168,000
203,000
194,000
205,000
247,000
190,000
206,000
323,000
197,000
207,000
251,000
192,000
208,000 226,000
171,000
190,000
281,000
287,000
152,000
235,000
210,000
201,000
258,000
216,000
216,000
321,000
174,000
225,000
135,000
242,000
176,000
225,000
205,000
132,000
246,000
297,000
271,000
204,000
264,000
273,000
206,000
240,000
187,000
287,000
160,000
211,000
186,000
211,000
240,000
194,000
202,000
320,000
207,000
197,000
261,000
184,000
214,000
-
Rating:
/5
Solution: It has been noted that swimming pools do nothing to