BB MAT 240 Module Two Assignment Template
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Southern New Hampshire University *
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240
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Mathematics
Date
Apr 3, 2024
Type
docx
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4
Uploaded by AmbassadorJay2528
Selling Price and Area Analysis for D.M. Pan National Real Estate Company
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Report: Selling Price and Area Analysis for D.M. Pan National Real Estate Company
Briana Burgess
Department of Mathematics, SNHU
MAT 240: Applied Statistics
Gerald Weyand
3/17/2024
Selling Price and Area Analysis for D.M. Pan National Real Estate Company
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Report: Selling Price and Area Analysis for D.M. Pan National Real Estate Company
Introduction
This report offers details about the relationship between the selling price of properties and their square footage in the East North Central region of the United States.
Generate a Representative Sample of the Data
A sample of 30 properties sold in the East North Central region was randomly selected, and the statistical measures for the listing price and square footage variables were computed as shown below:
Listing Price:
- Mean: $216,957
- Median: $213,200
- Standard Deviation: $38,537
Square Feet:
- Mean: 1,690
- Median: 1,655
- Standard Deviation: 409
Analyze Your Sample
A truly random sample of 30 properties from the East North Central region was created by utilizing the RAND function in Excel to assign random numbers to 100 samples initially provided. This randomization process ensured an unbiased selection. The selected 30 samples
Selling Price and Area Analysis for D.M. Pan National Real Estate Company
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were then sorted based on these random numbers from lowest to highest, resulting in a representative sample.
Upon comparing the statistical measures (mean, median, and standard deviation) of the East North Central regional sample with the national statistics, it was found that they exhibit similarities. While regional samples may naturally vary in prices due to location-specific factors, the relationship between the price range and square footage remains consistent with the national trends. This indicates that the regional sample is reflective of the overall national market trends, providing valuable insights for analysis and comparison.
Generate Scatterplot
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Selling Price and Area Analysis for D.M. Pan National Real Estate Company
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Observe Patterns
In the scatterplot graph, the X-axis represents Square Feet, while the Y-axis represents Listing Price. The graph displays a positive association between these variables, indicating that as the square footage increases, the listing price tends to rise as well. The trend line in the graph shows a linear shape, further confirming the direct relationship between square footage and listing price, where larger properties typically command higher prices.
However, there is one outlier in the scatterplot. This outlier can be attributed to the truly random nature of the sample selection process. In this case, the outlier represents a house with significantly more square footage than the average size in the sample. Such outliers are not uncommon in random samples and can sometimes skew the overall trend.
Considering the regression equation derived from the scatterplot, if you had an 1,800 square foot house, it would be reasonable to list it for around $220,000. This price falls within the expected range based on the regression analysis and is in line with other houses of similar size in the market. Listing the house at this price would ensure that it is competitive and does not deter potential buyers due to being overpriced.