This paper presents a report concerning the nature of housing market in Southwest Florida. In completing this report, two forms of data were used namely Gulf View Condominiums and No Gulf View Condominiums.
A. Descriptive Statistics Summary of the Forty Gulf View Condominiums (List Price)
The distribution is normal with a confidence of: 1.08% (Anderson-Darling normality test)If the distribution is normal:
B. Descriptive Statistics Summary of the Forty Gulf View Condominiums (Sale Price)
The distribution is normal with a confidence of: 0.71% (Anderson-Darling normality test)If the distribution is normal:
C. Descriptive Statistics Summary of the Forty Gulf View Condominiums (Days to Sell)
The distribution is normal with a confidence of: 0.11% (Anderson-Darling normality test)If the distribution is normal:
D. Descriptive Statistics Summary of the Eighteen No Gulf View Condominiums (List Price)
The distribution is normal with a confidence of: 17.6% (Anderson-Darling normality test)If the distribution is normal:
E. Descriptive Statistics Summary of the Eighteen No Gulf View Condominiums (Sale Price)
The distribution is normal with a confidence of: 22.68% (Anderson-Darling normality test)If the distribution is normal:
F. Descriptive Statistics Summary of the Eighteen No Gulf View Condominiums (Days to Sell)
The distribution is normal with a confidence of: 80.88% (Anderson-Darling normality test)If the distribution is normal:
Comparisons
The mean sale price of gulf view condominiums is greater than the mean sale price of non-gulf view condominiums.
The mean number of days to sell gulf view condominiums is lesser compared to the mean number of days to sell of non-gulf view condominiums.
The variation in the sale prices of gulf view condominiums are greater compared to the variation in the sale prices of non-gulf view condominiums.
The variation in the number of days to sell of gulf view condominiums are greater compared to the variation in the number of days to sell of non-gulf view condominiums.
G. 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 for each?
g. 1. GULF VIEW CONDOMINIUMS
Confidence level = 95%
z= 1.96
Mean Selling Price = 544000
E=Z*s/√n = 40000
n = (1.96*544,000/40000)2 = 710
The minimum sample size is 710
g. 2. No GULF VIEW CONDOMINIUMS
Confidence level = 95%
z= 1.96
Mean Selling Price = 224000
E=Z*s/√n = 15000
n = (1.96*224000/15000)2 = 857
The minimum sample size is 857.
H. 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 (based on the percent difference for the sale and list price) and number of days required to sell each of these units?
A Gulf View condominium with a list price of $589,000 will have a final selling price of $841880 while a no-Gulf View condominium with a list price of $285,000 will have a final selling price of $262,200.
Conclusion
The final selling price varies depending on the initial listing price and sale price. The housing market in Southwest Florida differs depending on the type of unit to purchase, the listing price, selling price, and the number of days to sell the product.
Source
Boyle, R. (1988). Descriptive statistics (1st ed.). Burwood, Vic.: Victoria College Press.
