Académique Documents
Professionnel Documents
Culture Documents
By
Stats Bros
Rafael Aita Junek
Contents
1.
2.
Introduction ............................................................................................................................................... 2
Data Analysis ............................................................................................................................................. 2
2.1
2.2
3.
4.
I.
2.3
Averages ............................................................................................................................................. 4
1. Introduction
Gulf Real Estate Properties, Inc., expert in the real estate market want to analysis sales of real estate
property. The real estate firm located in Southwest Florida, monitors condominium sales by collecting data on
the location, list price, sale price, and number of days it takes to sell. The location of condominium is
classified by two types as Gulf View and No Gulf View. The Gulf View is located directly on the Gulf
of Mexico and the No Gulf view is located on the bay or a golf course, near but not on the gulf. Recent
sample sales data for 90 Gulf view condominiums and 50 No Gulf view condominiums were collected
from data of sales from Naples, Florida. The objective is to come up with an estimate of the final selling price
and number of days to sell the when the list price for Gulf view and No Gulf View condominiums are
given. We will be using descriptive statistics to give an idea to real estate agent about how the condominium
market is. We will also be using percentage confidence interval estimation method to find the sample data
mean in relation to the census mean of list prices and average days took to sell each type of condominiums.
2. Data Analysis
Average listing price for Gulf view condominiums as per sample date is $ 474,828.89. Minimum
Average sale price for Gulf view condominiums as per sample date is $ 455,742.22. Minimum selling
Average number of days to sell a Gulf view condominium as per sample date is 106 days. Least
number of days to sell a gulf view condominium is 28 days. Maximum number of days to sell a gulf view
condominium is selling price is 282 days.
Average listing price for No Gulf view condominiums as per sample date is $ 214,460.00. Minimum
Average sale price for No Gulf view condominiums as per sample date is $ 204,474.00. Minimum
Average number of days to sell a No Gulf view condominium as per sample date is 129 days. Least
number of days to sell a No Gulf view condominium is 48 days. Maximum number of days to sell a No gulf
view condominium is selling price is 338 days.
The tables below are a representation of descriptive statistics of the sample data given
Gulf View Condominiums
Mean
Median
Standard Error
Mode
Standard Deviation
Sample Variance
Skewness
Range
List Price
474,828.89
455,742.22
435,000.00
410,000.00
20564.91
469,000.00
195095.88
305,000.00
190999.63
105.99
5.49
96
85
52.13
36480858871.41
2717.13
805100
810000
254
1.06
Sum
$ 42,734,600.00
Count
20133.13
Days to Sell
38062403425.72
Minimum
Maximum
Sale Price
169,900.00
975,000.00
90
1.11
$
$
165,000.00
975,000.00
$ 41,016,800.00
90
0.94
28
282
9539
90
List Price
Sale Price
Days to Sell
Mean
214,460.00
204,474.00
Median
212,500.00
203,500.00
122.00
43476.41
71.36
Standard Error
Mode
6913.87
Standard Deviation
Sample Variance
Skewness
279,000.00
48888.44
5091.73
174000.00
157000.00
290
148,000.00
Sum
$ 10,723,000.00
Count
150.00
1890197881.63
Minimum
Maximum
230,000.00
10.09
2390079183.67
0.47
Range
6148.49
129.32
322,000.00
50
0.29
$
$
135,500.00
292,500.00
$ 10,223,700.00
50
1.35
48
338
6466
50
2.3 Averages
In every category the condominiums with a gulf view outperformed the other condominiums. The mean
of the Gulf View Condominiums List Price and Sale Price are higher, and the number of days it takes to sell
the home is less. To simplify the Gulf View Condominiums sell for more and quicker.
$500.00
$ In 000's
$400.00
$300.00
$200.00
$100.00
$-
Comparing data from Table 1 and Table 2 Gulf View Condominiums have a mean list price of $
474,828.89, while No Gulf View Condominiums have a mean of $ 214,460.00. The difference between these
two numbers could be argued that Gulf of Mexico views can increase a homes listing price by almost double
its current asking price. The average sale Price of the Gulf View Condominiums is $ 455,742.22, whereas the
No Gulf View Condominiums have an average of $ 204,474.00.The one statistic that No Gulf View
Condominiums do not want to have a higher value than the Gulf View Condominiums is the actual statistic
that they are higher on. When you are trying to sell a home, you do not want it to take forever. The No Gulf
View Condominiums takes a mean of 129.32 days to sell, compared to Gulf View Condominiums taking only
105.99 days. That is a difference of 23.33 days, a week shy of one month more to sell a condominium.
When you look at the difference of the List Price subtracted by the Sale Price, a real estate agent could
make it look in favor of the Gulf View Condominiums. The Gulf View Condominiums have a difference of
$ 19086.67, whereas the No Gulf View Condominiums is only $ 9,986.00. This difference makes it look like
No Gulf View Condominiums sell closer to their list price, but this is untrue. Instead of subtracting the mean
Sale Price from the List Price, and you divide the Sale Price by the List Price you get the percentile of the
difference. In doing this you learn that on average the Gulf View Condominiums retain 95.82% of their
listing price, whereas the No Gulf View Condominiums only retain 95.65%. So not only do the gulf view
homes list and sell for more quickly, but it also sells closer to their list value.
mean number of days to sell for Gulf View condominiums. Large sample data given and population
standard deviation () is unknown.
Below are the calculations for finding 95% confidence interval estimate of the population mean
Sales Price
Table 3
90
$ 455,742.22
190999.63
95%
5%
89
1.987
Days to sell
90
105.99
52.13
95%
5%
89
1.987
Sale Price: The Formula for finding the mean interval for selling price of the sample with 95%
confidence interval estimate is as given below:
= x [(t/2)* S/n]
With 95% confidence we can expect that the mean sale price for the population of Gulf view
Days to sell: Formula for finding mean interval for number of days to sell of the sample with 95%
confidence interval estimate is as given below:
= x [(t/2)* S/n]
With 95% confidence we can expect that the average days to sell for the population of Gulf view
number of days of No Gulf View Condominium, we will use the T-table since the standard deviation
() is unknown.
You can find below the table and calculations used to find the 95% interval of the population
Sample Mean ( x )
Standard Deviation ( s )
Confidence Level ( 1- )
Sales Price
Days to sell
50
50
$204,474.00
129.32
95%
95%
43476.41
Level of significance ( )
t0.025 (t/2)
Table 4
5%
49
2.01
71.36
5%
49
2.01
Sales price: The process to find the 95% interval for the sales price is shown below.
= x [(t/2)* S/n]
With 95% confidence we can expect that the mean sale price for the population of No Gulf view
condominiums is between $ 191,990.06 and $ 216,957.94.
Days to sell: The process to find the 95% interval for the days to sell is shown below.
= x [(t/2)* S/n]
= 129.32 (20.4905)
= (108.83, 149.8)
With 95% confidence we can expect that the mean days to sale for the population of No Gulf
To find the mean selling price of the two types of condominiums with the margin of errors
proposed by management, we are required to find the sample size that fits such margin of errors.
After finding the sample size, we can compute the mean selling price for both types of
condominiums.
The process to find the sample size of the Gulf view condominiums is shown below.
N = (2 *(Z/2)2) / E2
is the population standard deviation taken with reference to sample data given.
N = (190999.632 * 1.962) / 400002
N = 87.59
A sample size of 88 is desirable for a margin of error of 40,000 at the 95% confidence level for
The process to find the sample size of the No Gulf view condominiums is shown below.
N = (2 *(Z/2)2) / E2
is the population standard deviation taken with reference to sample data given.
N = (43476.412 * 1.962) / 150002
N = 32.27
A sample size of 32 is desirable for a margin of error of 15,000 at the 95% confidence level for
to estimate the selling price and no of days took to sell from list price given. Scatter plot will be
used to find the trends and the equation of trend line to know about the relationship between two
variable.
From the Appendix in pages 11 & 12 equations of the trend lines taken to calculate estimates
Estimated sale price for Gulf view given list price as $589,000.00
y = 0.9763x - 7815.2 => y= 0.9763*(589000)-7815.2
Estimate of final selling price = y= $ 567,225.50
Estimated sale price for No Gulf view given list price as $285,000.00
y = 0.8827x + 15164=> y= 0.8827*(285000) +15164
Estimate of final selling price = y= $ 266,733.5
Estimated sale price for No Gulf view given list price as $285,000.00
y = -0.00063x + 263.74=> y= -0.00063*(285000) +263.74
Estimate of final selling price = y= 84.19 days
6. Conclusion
Gulf Real Estate Property Inc. should take in account the following conclusions:
Even though the Gulf view condominiums are more expensive than the no Gulf view
condominiums, it takes 23 fewer days in average to sell the former more expensive
condominiums.
The sample size for the Gulf view condominiums should approximately stay the same
after taking in consideration the desired margin of error requested by management.
However, the sample size for the No gulf view should decrease to 34, in order to meet the
Since the data shows a higher demand for gulf view condominiums, the more expensive
real estate, and a lesser discount from listing price. Gulf Real Estate Property Inc. should
focus in listing more gulf view condominiums, increasing their inventory turnover and
profits.
I.
Appendix
Gulf View List Pice vs Sales Price
1200000
Sale Price in $
1000000
y = 0.9763x - 7815.2
800000
600000
400000
200000
0
200000
400000
600000
List Price In $
800000
1000000
1200000
300
No of Days to sell
250
200
y = 3E-05x + 91.257
150
100
50
0
200000
400000
600000
List Price in $
800000
1000000
1200000
350000
y = 0.8827x + 15164
Sale Price in $
300000
250000
200000
150000
100000
50000
0
50000
100000
150000
200000
List Price in $
250000
300000
350000
400
350
Days to sell
300
250
y = -0.0006x + 263.74
200
150
100
50
0
50000
100000
150000
200000
List Price in $
250000
300000
350000