Refer to the North Valley Real Estate data and prepare a report on the sales prices of the homes. Be sure to answer the following questions in your report: a. Around what values of price do the data tend to cluster? What is the mean sales price? What is the median sales price? Is one measure more representative of the typical sales prices than the others? b. What is the range of sales prices? What is the standard deviation? About 95% of the sales prices are between what two values? Is the standard deviation a useful statistic for describing the dispersion of sales price? c. Repeat (a) and (b) using FICO score.
Added by Belen M.
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To determine the clustering of the data, we can look at the mode or the most frequently occurring values in the dataset. The mean sales price can be calculated by adding up all the sales prices and dividing by the number of homes. The median sales price is the Show more…
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Refer to the North Valley real estate data recorded on homes sold during the last year. Prepare a report on the selling prices of the homes based on the answers to the following questions. a. Compute the minimum, maximum, median, and the first and the third quartiles of price. Create a box plot. Comment on the distribution of home prices. b. Develop a scatter diagram with price on the vertical axis and the size of the home on the horizontal. Is there a relationship between these variables? Is the relationship direct or indirect? c. For homes without a pool, develop a scatter diagram with price on the vertical axis and the size of the home on the horizontal. Do the same for homes with a pool. How do the relationships between price and size for homes without a pool and homes with a pool compare?
Refer to the North Valley Real Estate data, which report information on homes sold during the last year. a. The mean selling price (in $\$$ thousands) of the homes was computed earlier to be $\$ 357.0$, with a standard deviation of $\$ 160.7$. Use the normal distribution to estimate the percentage of homes selling for more than $\$ 500,000$. Compare this to the actual results. Is price normally distributed? Try another test. If price is normally distributed, how many homes should have a price greater than the mean? Compare this to the actual number of homes. Construct a frequency distribution of price. What do you observe? b. The mean days on the market is 30 with a standard deviation of 10 days. Use the normal distribution to estimate the number of homes on the market more than 24 days. Compare this to the actual results. Try another test. If days on the market is normally distributed, how many homes should be on the market more than the mean number of days? Compare this to the actual number of homes. Does the normal distribution yield a good approximation of the actual results? Create a frequency distribution of days on the market. What do you observe?
Kari H.
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