For this practical application assignment, make believe that you are a real estate agent living and working in southern Florida. The senior real estate partner of your firm e-mails you a document containing Florida pool home data, which you’ve retrieved from the Updates and Handouts section of this unit, and asks you to find ways describe the most important aspects of the home sale data. This technique is called descriptive statistics. The file contains data for 80 properties, including home prices, home sizes, number of bathrooms, niceness ratings, and whether or not there’s a pool. This file is used as an example on pages 142–143 of Business Statistics in Practice. Be sure that you have read Appendix 2.1, on pages 80–87, in your textbook, which provides instruction on how to construct a frequency distribution, histogram, and scatter plot in Excel. Compute the following data parameters:
1. Calculate the mean, median, range, and standard deviation of home price and size. For the assignment document you will submit, you can cut and paste the answers from the Analysis ToolPak, or you can place your results in the same Excel sheet as the data, below the existing table. Be sure to label each of your data cells. (For example: Row 84 Column B should contain the calculated Mean of Home Selling Prices; Column A already contains the title, mean; Column C the Mean of Home Size in Square Feet; Row 85 Column B should contain the Home Median price, and so on. Highlight all your results in yellow.) Then cut and paste that spreadsheet into a Word document. Be sure to verbally summarize your data findings in four or five sentences that will help a home buyer make a purchasing decision in the Florida real estate market. 2. Calculate the mode for the number of bathrooms. (You can cut and paste the answers from the Analysis ToolPak, or you can use Row 88 Column D for this parameter. Do not forget to title Column A Row 88–Mode, and highlight your results in yellow.)
Then verbally summarize this data in order to help a buyer make a purchasing decision in the Florida real estate market. 3. Produce a histogram that shows the number of houses by price range, in increments of $50,000 (for example, $0–$50,000, $50,001–$100,000, and so on). Use a separate Excel sheet to do this and label that sheet “Home Price Range Histogram.” Then verbally summarize how this histogram will help a buyer make a purchasing decision in the Florida real estate market. 4. Produce a scatter plot showing the relationship between price and home size. In a cell under your scatterplot, indicate whether the relationship is positive or negative and whether the results are what you expect. Use a separate Excel sheet to do this and label the sheet “Scatterplot.” Then verbally summarize how this scatter plot output will help a buyer make a purchasing decision in the Florida real estate market.