![STATISTICS F/BUSINESS+ECONOMICS-TEXT](https://www.bartleby.com/isbn_cover_images/9781305881884/9781305881884_largeCoverImage.gif)
Gulf Real Estate Properties
Gulf Real Estate Properties, Inc., is a real estate firm located in southwest Florida. The company, which advertises itself as “expert in the real estate market,” monitors condominium sales by collecting data on location, list price, sale price, and number of days it takes to sell each unit. Each condominium is classified as Gulf View if it is located directly on the Gulf of Mexico or No Gulf View if it is located on the bay or a golf course, near but not on the Gulf. Sample data from the Multiple Listing Service in Naples, Florida, provided recent sales data for 40 Gulf view condominiums and 18 No Gulf view condominiums. Prices are in thousands of dollars. The data are shown in Table 8.7.
Managerial Report
- 1. Use appropriate
descriptive statistics to summarize each of the three variables for the 40 Gulf View condominiums. - 2. Use appropriate descriptive statistics to summarize each of the three variables for the 18 No Gulf View condominiums.
- 3. Compare your summary results. Discuss any specific statistical results that would help a real estate agent understand the condominium market.
- 4. Develop a 95% confidence
interval estimate of the populationmean sales price and population mean number of days to sell for Gulf View condominiums. Interpret your results. - 5. Develop a 95% confidence interval estimate of the population mean sales price and population mean number of days to sell for No Gulf View condominiums. Interpret your results.
- 6. Assume the branch manager requested estimates of the mean selling price of Gulf View condominiums with a margin of error of $40,000 and the mean selling price of No Gulf View condominiums with a margin of error of $15,000. Using 95% confidence, how large should the
sample sizes be? - 7. Gulf Real Estate Properties just signed contracts for two new listings: a Gulf View condominium with a list price of $589,000 and a No Gulf View condominium with a list price of $285,000. What is your estimate of the final selling price and number of days required to sell each of these units?
1.
![Check Mark](/static/check-mark.png)
Find the appropriate descriptive statistics for Gulf View condominiums.
Answer to Problem 2CP
Output using the MINITAB software is given below:
Explanation of Solution
Calculation:
The given information is that the Gulf Real estate properties firm located in the Southwest Florida advertises itself as an “expert in the real estate market”. The data are collected on the sales on a particular location, list price, and the number of days it takes to sell each unit. The condominium is classified as gulf view and no gulf view.
Software Procedure:
Step by step procedure to obtain the descriptive statistics using the MINITAB software:
- Choose Stat > Basic Statistics > Display Descriptive Statistics.
- In Variables enter the columns List Price, Sale Price, and Days to Sell.
- In Statistics select Mean, Median, Trimmed Mean, Standard Deviation, Standard Error Mean, Minimum, Maximum, Quartile 1, Quartile 3, and Total.
- Click OK.
2.
![Check Mark](/static/check-mark.png)
Find the appropriate descriptive statistics for No Gulf View condominiums.
Answer to Problem 2CP
Output using the MINITAB software is given below:
Explanation of Solution
Calculation:
Calculate the appropriate descriptive statistics for No Gulf View condominiums:
Software Procedure:
Step by step procedure to obtain the descriptive statistics using the MINITAB software:
- Choose Stat > Basic Statistics > Display Descriptive Statistics.
- In Variables enter the columns List Price, Sale Price, and Days to Sell.
- In Statistics select Mean, Median, Trimmed Mean, Standard Deviation, Standard Error Mean, Minimum, Maximum, Quartile 1, Quartile 3, and Total.
- Click OK.
3.
![Check Mark](/static/check-mark.png)
Compare the results and explain any particular statistic that results to help the real estate agent to know the condominium market.
Explanation of Solution
Observation:
The mean price for the Gulf View condominium list is $474,000 and the median price is $437,000. The mean price for the No Gulf View condominium list is $21,800 and the median price is $212,500. It reflects that the Gulf View condominiums are most expensive and they are two times of the No Gulf Views.
The mean number of days to sell a condominium of Gulf view is slightly better than the No Gulf view condominium. It indicates that nearly three months will be taken to sell a Gulf View condominium and nearly four months will be taken to sell a No Gulf View condominium.
The most expensive list-price is for a Gulf view condominium and the least expensive list-price is for No Gulf view condominium.
The Gulf view condominiums with mean list price are $474,000 and a mean sale price is $454,200. It is sold on an average of $19,800 and it is 4.2% below list price.
The No Gulf view condominiums with mean list price are $212,800 and a mean sale price is $203,200. It is sold on an average of $9,600 and it is 4.5% below list price.
Gulf view condominiums are more expensive and tend to sell slightly faster than the No Gulf view.
4.
![Check Mark](/static/check-mark.png)
Find the 95% confidence interval for the population mean sales price and the population mean number of days to sell for Gulf view condominiums.
Interpret the results.
Answer to Problem 2CP
The 95% confidence interval for the population mean sales price for Gulf view condominiums is ($392,700, $515,800) and the population mean number of days to sell for Gulf view condominiums is (89 days, 123 days).
Explanation of Solution
Calculation:
Calculate the 95% confidence interval for the population mean sales price and the population mean number of days to sell for Gulf view condominiums.
Software Procedure:
Step-by-step procedure to obtain the confidence interval using the MINITAB software:
- Choose Stat > Basic Statistics > 1-Sample T.
- In Samples in columns, enter the variable sales price, days to sell.
- Check Options; enter Confidence level as 95%.
- Click OK.
Output using the MINITAB software is given below:
Observation:
The sales price of the Gulf View condominiums is from $392,700 to $515,800 and the days to sell Gulf View condominiums are 89 days to 123 days.
5.
![Check Mark](/static/check-mark.png)
Find the 95% confidence interval for the population mean sales price and the population mean number of days to sell for No Gulf view condominiums.
Interpret the results.
Answer to Problem 2CP
The 95% confidence interval for the population mean sales price for No Gulf view condominiums is ($181,400, $225,000) and the population mean number of days to sell for No Gulf view condominiums is (97 days, 173 days).
Explanation of Solution
Calculation:
Calculate the 95% confidence interval for the population mean sales price and the population mean number of days to sell for No Gulf view condominiums.
Software Procedure:
Step-by-step procedure to obtain the confidence interval using the MINITAB software:
- Choose Stat > Basic Statistics > 1-Sample T.
- In Samples in columns, enter the variable sales price, days to sell.
- Check Options; enter Confidence level as 95%.
- Click OK.
Output using the MINITAB software is given below:
Observation:
The sales price of the No Gulf View condominiums is from $181,400 to $225,000 and the days to sell No Gulf View condominiums are 97 days to 173 days.
6.
![Check Mark](/static/check-mark.png)
Find the sample size for the Gulf view and No Gulf view condominiums for estimating the mean selling price.
Answer to Problem 2CP
The sample size for the Gulf view for estimating the mean selling price is 89 and the sample size for the No Gulf view for estimating the mean selling price is 23.
Explanation of Solution
Calculation:
The sample size for the interval estimate of a population mean is as follows:
From “Table 8.1 value of
For Gulf view condominiums:
From Part (1), the standard deviation for Gulf view selling price is 192.5.
The sample size is as follows:
Thus, the sample size of 89 is required.
For No Gulf view condominiums:
From Part (2), the standard deviation for No Gulf view selling price is 43.9.
The sample size is as follows:
Thus, the sample size of 23 is required.
7.
![Check Mark](/static/check-mark.png)
Find the final selling price and the number of days required to sell each of the unit.
Answer to Problem 2CP
The final selling price and the number of days required to sell each of the unit are $564,262 and 106 days, respectively, for Gulf view condominium.
The final selling price and the number of days required to sell each of the unit are $272,175 and 135 days, respectively, for No Gulf view condominium.
Explanation of Solution
Calculation:
Here, a Gulf view condominium with a list price is $589,000 and a No Gulf view condominium with a list price is $285,000.
From Part (3), the Gulf view condominium is sold on an average of 4.2% below its list price.
The estimated selling price is as follows:
The estimated number of days to sell each of the unit is 106 days.
From Part (3), the No Gulf view condominium is sold on an average of 4.5% below its list price.
The estimated selling price is as follows:
The estimated number of days to sell each of the unit is 135 days.
Want to see more full solutions like this?
Chapter 8 Solutions
STATISTICS F/BUSINESS+ECONOMICS-TEXT
- At the same restaurant as in Question 19 with the same normal distribution, what's the chance of it taking no more than 15 minutes to get service?arrow_forwardClint, obviously not in college, sleeps an average of 8 hours per night with a standard deviation of 15 minutes. What's the chance of him sleeping between 7.5 and 8.5 hours on any given night? 0-(7-0) 200 91109s and doiw $20 (8-0) mol 8520 slang $199 galbrog seam side pide & D (newid se od poyesvig as PELEO PER AFTE editiw noudab temand van Czarrow_forwardTimes to complete a statistics exam have a normal distribution with a mean of 40 minutes and standard deviation of 6 minutes. Deshawn's time comes in at the 90th percentile. What percentage of the students are still working on their exams when Deshawn leaves?arrow_forward
- Suppose that the weights of cereal boxes have a normal distribution with a mean of 20 ounces and standard deviation of half an ounce. A box that has a standard score of o weighs how much? syed by ilog ni 21arrow_forwardBob scores 80 on both his math exam (which has a mean of 70 and standard deviation of 10) and his English exam (which has a mean of 85 and standard deviation of 5). Find and interpret Bob's Z-scores on both exams to let him know which exam (if either) he did bet- ter on. Don't, however, let his parents know; let them think he's just as good at both subjects. algas 70) sering digarrow_forwardSue's math class exam has a mean of 70 with a standard deviation of 5. Her standard score is-2. What's her original exam score?arrow_forward
- Clint sleeps an average of 8 hours per night with a standard deviation of 15 minutes. What's the chance he will sleep less than 7.5 hours tonight? nut bow visarrow_forwardSuppose that your score on an exam is directly at the mean. What's your standard score?arrow_forwardOne state's annual rainfall has a normal dis- tribution with a mean of 100 inches and standard deviation of 25 inches. Suppose that corn grows best when the annual rainfall is between 100 and 150 inches. What's the chance of achieving this amount of rainfall? wved now of sociarrow_forward
- 13 Suppose that your exam score has a standard score of 0.90. Does this mean that 90 percent of the other exam scores are lower than yours?arrow_forwardBob's commuting times to work have a nor- mal distribution with a mean of 45 minutes and standard deviation of 10 minutes. How often does Bob get to work in 30 to 45 minutes?arrow_forwardBob's commuting times to work have a nor- mal distribution with a mean of 45 minutes and standard deviation of 10 minutes. a. What percentage of the time does Bob get to work in 30 minutes or less? b. Bob's workday starts at 9 a.m. If he leaves at 8 a.m., how often is he late?arrow_forward
- Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw HillHolt Mcdougal Larson Pre-algebra: Student Edition...AlgebraISBN:9780547587776Author:HOLT MCDOUGALPublisher:HOLT MCDOUGALFunctions and Change: A Modeling Approach to Coll...AlgebraISBN:9781337111348Author:Bruce Crauder, Benny Evans, Alan NoellPublisher:Cengage Learning
- Big Ideas Math A Bridge To Success Algebra 1: Stu...AlgebraISBN:9781680331141Author:HOUGHTON MIFFLIN HARCOURTPublisher:Houghton Mifflin Harcourt
![Text book image](https://www.bartleby.com/isbn_cover_images/9780079039897/9780079039897_smallCoverImage.jpg)
![Text book image](https://www.bartleby.com/isbn_cover_images/9780547587776/9780547587776_smallCoverImage.jpg)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337111348/9781337111348_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781680331141/9781680331141_smallCoverImage.jpg)