Property Portfolio Analysis

1078 words - 5 pages

COMPUTER ASSIGNMENTAUTUMN SESSION 2012SCHOOL OF COMPUTING, ENGINEERING & MATHEMATICS | |

| Student Name and ID number |
Group Member 1 | Matthew Yee, 17048604. Tuesday 12-1pm |
Group Member 2 | Johnathan Morey, 17238696. Wednesday 11am-12pm |
Group Member 3 | Linda Yi, 17032764. Tuesday 12-1pm |
Group Member 4 | Christopher Shepherd, 16673537. Tuesday 9-10am |

Unit Name: Statistics for Business
Unit Number: 200032
Due Date: Week 13 tutorial
Number of Questions: 4
Value: 10%
Total Number of Pages: 6
Unit Coordinator: Mr. Neil Hopkins (Parramatta)
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2433
b) median = 188.25
c) range = 205
d) standard deviation = 33.44086
e) variance = 1118.291

Value |
| |
Mean | 191.2433 |
Standard Error | 4.317196 |
Median | 188.25 |
Mode | 166.5 |
Standard Deviation | 33.44086 |
Sample Variance | 1118.291 |
Kurtosis | 2.411164 |
Skewness | 0.744408 |
Range | 205 |
Minimum | 100 |
Maximum | 305 |
Sum | 11474.6 |
Count | 60 |
| |

Question 2 (4 marks)

Estimate with 95% confidence the average age of a house.

Age |
| |
Mean | 33.95 |
Standard Error | 1.708309 |
Median | 31 |
Mode | 30 |
Standard Deviation | 13.2325 |
Sample Variance | 175.0992 |
Kurtosis | 5.493929 |
Skewness | 2.053169 |
Range | 75 |
Minimum | 10 |
Maximum | 85 |
Sum | 2037 |
Count | 60 |
Confidence Level(95.0%) | 3.418318 |
| |

The 95% confidence interval for the average age of the house is from 30.531682 to 37.368318.

Question 3 (5 marks)

Using an appropriate hypothesis test, at a 5% level of significance, can you conclude that there is any difference between the average value between houses that have a fireplace (Fireplace = 1) and houses that don’t have a fireplace (Fireplace = 0)?

The hypothesis test using the two-sample assuming equal variance function on excel proves that the hypothesis is not rejected as resulting: P > 0.05 and t stat < t critical two- tail.

t-Test: Two-Sample Assuming Equal Variances | | |
| | |
  | FirePlace =0 | FirePlace =1 |
Mean | 195.001875 | 186.9478571 |
Variance | 1231.580596 | 993.7587063 |
Observations | 32 | 28 |
Pooled Variance | 1120.870406 | |
Hypothesized Mean Difference | 0 | |
df | 58 | |
t Stat | 0.929636713 |   |
P(T<=t) one-tail | 0.178206167 | |
t Critical one-tail | 1.671552762 | |
P(T<=t) two-tail | 0.356412334 |   |
t Critical two-tail | 2.001717484 |   |
| | |
Step 1H0 : µ1 = µ2 there is a difference in average value of houses that fireplace = 1HA : µ1 ≠ µ2 there is a no difference in average value of houses that fireplace = 0Step 2 t = (Ẋ1 - Ẋ2) – (µ1 - µ2 ) -------------------------- √σ12 / n1 + σ22 / n2Step 3 α = 0.05 Z0.05 = 2Step 4 Reject H0 : If t < 2 can reject the H0:Step 5 from excel print out t- stat is 60.04Step 6 If ‘t’ Stat’s value is less than t critical two-tail we can reject the null hypothesis. Since 2< 60 we cannot reject the null hypothesis. We can conclude the 5% level...

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