1.

Use appropriate descriptive statistics to summarize each of the three variables for the
40 Gulf View condominiums.
1. Gulf View Condominiums

List Price Sales Price

Mean 454.2225
474.00
Standard
Mean 75
Error 30.43973
Standard 31.194
Median 417.5
Error 29
Mode 305
Median 437
Standard
Mode 975
Deviation 192.5178
Standard
Sample
Deviatio
Variance 37063.09
n 197.29
Kurtosis 1.183621
Sample
Skewness 1.159388
Varianc 38923.
Range 810
e 36
Minimum 165
1.0113
Maximum 975
Kurtosis 29
Sum 18168.9
Skewnes 1.0958
Count 40
s 15
Confidenc
Range 805.1
e Level
Minimu
(95.0%) 61.57016
m 169.9
Maximu
m 975
18960.
Sum 3
Count 40
Confide
nce
Level 63.096
(95.0%) 41
Days to Sell

Mean 106
Standard 8.25607
Error 8
Median 96
Mode 85
Standard 52.2160
Deviation 2
 Sample 2726.51
Variance 3
2.02202
Kurtosis 6
1.07764
Skewness 2
Range 254
Minimum 28
Maximum 282
Sum 4240
Count 40
Confidence
Level(95.0% 16.6994
) 9
* Prices are in thousands of dollars.

2. Use appropriate descriptive statistics to summarize each of the three variables for the
18 No Gulf View condominiums.

List Price

212.8055
Mean 556
Standard 11.53651
Error 342
Median 212.5
Mode 279
Standard
Deviatio 48.94528 2. No Gulf View Condominiums
n 124
Sales
Sample 2395.640
Price
Variance 556
Mean -
203.1888889
Standard 0.085239
Kurtosis
Error 64
10.34537846
Skewnes
Median 0.543955 203.5
sMode 061 179
Range
Standard 174
Minimu
Deviation 43.89172358
m
Sample 148
Maximu
Variance 1926.483399
m
Kurtosis 322
-0.464068271
Sum 3830.5
Count 18
Confiden
ce
Level(95 24.33991
.0%) 574
 Days to Sell

Mean 135
Standard
Error 17.98401614
Skewness 0.30418061 Median 126
Range 157 Mode #N/A
Minimum 135.5 Standard
Maximum 292.5 Deviation 76.2997186
Sum 3657.4 Sample
Count 18 Variance 5821.647059
Confidence Kurtosis 2.215301224
Level Skewness 1.360546957
(95.0%) 21.82684063 Range 290
* Prices are in thousands of dollars.
Minimum 48
3. Compare your summary results. Discuss any specific Maximum 338
Sum 2430
statistical results that would help a
Count 18
real estate agent understand the condominium market. Confidence
Level(95.0
Comparison of the list price of Gulf View Apartments vs %) 37.94295741
Non-Gulf View Apartments

1. The average list price in gulf view condominiums is higher than the average list price of
no gulf condominiums.
2. Median in gulf view is higher than the median in no gulf view condominiums.
3. The highest occurrence value in gulf view is 975 and in no gulf is 279. This shows that
value of highest occurrence in gulf view is more than in no gulf view.
4. Standard deviation in gulf view is higher than in no gulf view, that means gulf view data
has more dispersion than non-gulf view.

Comparison of the sales price of Gulf View Apartments vs No Gulf View Apartments

1. Mean of sales price in gulf view is more than the mean of sales price in no gulf view.
2. The highest occurrence value in gulf view is 305 and in no gulf is 179. This shows that
value of highest occurrence in gulf view is more than in no gulf view.
3. Quartiles which distributes the data in 4 parts. Q1 and Q3 in gulf view are 314.75 and
522.875 respectively which are higher than the values of Q1 and Q3 in no gulf view
which are 177.125 and 229.25 respectively. The Inter quartile range in gulf view is
208.12 and in no gulf view is 52.125, which means that gulf view has more spread.
4. Confidence level in both views is same (95%).
5. Upper bound and lower bound in gulf view are 515.7927 and 392.6523 respectively, this
means 95% values lies between 515.7927 and 392.6523.
6. Standard deviation in gulf view is higher than in no gulf view, that means gulf view data
has more dispersion than non-gulf view.

Comparison of the days to sell of Gulf View Apartments vs Non-Gulf View Apartments

1. Mean of Days to sell in gulf view is more than the mean of Days to sell in no gulf view.
2. The highest occurrence value in gulf view is 48 and in no-gulf has no any value. This
shows that value of highest occurrence in gulf view is more than in no gulf view.
 3. Quartiles which distributes the data in 4 parts. Q1 and Q3 in gulf view are 71.75 and
136.25 respectively which are higher than the values of Q1 and Q3 in no gulf view which
are 74.75 and 149.75 respectively, Inter quartile range in gulf view is 64.5 and in no gulf
view is 75, which means that no gulf view has more spread.
4. Confidence level in both views is same (95%).
5. Upper bound and lower bound in gulf view are 122.6995 and 89.30051 respectively, this
means 95% values lies between 122.6995 and 89.30051.
6. Standard deviation in no gulf view is higher than in gulf view, that means no gulf view
data has more dispersion than non gulf view.

4. Develop a 95% confidence interval estimate of the population mean sales price and
population mean number of days to sell for Gulf View condominiums. Interpret
your results.
Solution:

Sales Price Days to Sell

GVC NGVC GVC NGVC
392.6523 181.362 GVC 89.30051 97.05704 NGCV
The 515.7927 225.0157 GVC 122.6995 172.943 NGCV mean population
mean sales price
is 392.6523 - 515.7927 using a level of significance of 5%. The population mean number of days
for the Gulf condominium is 89.3 – 122.6 days.

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.
Solution
The mean population mean sales price is 181.362- 225.0157 using a level of significance of 5%.
The population mean number of days for the Gulf condominium is 97.05704– 172.943 days.

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?
Solution
GULF VIEW CONDOMINIUMS
Confidence level = 95% z= 1.96
σ=192517.75
E=Z*σ/√n = 40000
n = (1.96*192517.75/40000) ^2 = 88.99
The minimum sample size is 90
NO GULF VIEW CONDOMINIUMS
Confidence level = 95% z= 1.96
σ=43891.72
E=Z*σ/√n = 15000
n = (1.96*43891.72/15000) ^2 = 32.89
The minimum sample size is 33

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?
Solution
Condo with a list price of Gulf View = $589,000
Calculated summary analysis for a Gulf View preciously.
The average cost list for a condominium is $474.0075 and that average sale value is $454.245.
$474,000 – $454,245 = $20, 755
Thus selling $20,755 underneath the selling price on average.
20 , 755
=0.0437869198
474 , 000
Therefore, a typical condominium with the Golf View is selling 4.38% well below the price list.
$589, 000 x (1 – 0.0438) = $ 563, 209.5042
The estimated sales price is thus approximately $563,210.
The days of sell for Gulf view condos is 106.
No Gulf View condo has a list price $285,000.
Through the previously calculated concise figures, the average price list is 212.805556 for a
Non-Gulf View Condominium or that the total selling price is 203.133333.
$212806 – $203, 133 = $9,673.
We sell $9,673 below the value of the total on average.
9,673
=0.454545
212,806
Therefore, a condo in No Gulf Vision offers on aggregate 4.545% well below the selling price.
= 285, 000 x (1 – 0.04545) = 272, 045.4545
The average price is therefore approximately $272.045.
The days of sell for the no gulf condo is 135 days.

Managerial Report
1. Formulate and present the rationale for a hypothesis test that Par could use to compare
the driving distances of the current and new golf balls.
Solution:
Here we have to the two model means (current and new): under this test the null and alternative
hypothesis.
Ho: There is no significant difference between the means.
Ha: There is significance difference between the means.
Thus, H0: mean Current>=mean NEW Ha: mean Current<mean NEW
α = 0.05

2. Analyze the data to provide the hypothesis testing conclusion. What is the p-value for your
test? What is your recommendation for Par, Inc.?
Solution:
 Current New
 
Mean 270.275 267.5
97.948717
Variance 76.61474359 9
Observations 40 40
Pooled Variance 87.28173077
Hypothesized Mean
Difference 0
df 78
t Stat 1.328361594
P(T<=t) one-tail 0.093966142
t Critical one-tail 1.664624645
P(T<=t) two-tail 0.187932285
t Critical two-tail 1.990847069  

Do not reject the null hypothesis. There is significant evidence to show that the population means
are different.

3. Provide descriptive statistical summaries of the data for each model.

Solution:
Data
Hypothesized Difference 0
Level of Significance 0.05
Population 1 Sample  
Sample Size 40
Sample Mean 270.275
 Sample Standard Deviation 8.7529848
Population 2 Sample  
Sample Size 40
Sample Mean 267.5
Sample Standard Deviation 9.8969045

4. What is the 95% confidence interval for the population mean driving distance of each model,
and what is the 95% confidence interval for the difference between the means of the two
populations?

Solution
Intermediate Calculations

Population 1 Sample Degrees of Freedom 39

Population 2 Sample Degrees of Freedom 39

Total Degrees of Freedom 78

Pooled Variance 87.2817

Standard Error 2.0890

Difference in Sample Means 2.7750

t Test Statistic 1.3284

Two-Tail Test  

Lower Critical Value -1.9908

Upper Critical Value 1.9908

p-Value 0.1879

 
Population mean driving distance of current ball = 267.4756596 - 273.0743404.
Population mean driving distance of new ball = 264.3348164 - 270.6651836.
Difference between the means of the two populations = -1.389 – 6.929
x 1−x 2=2.77

Value of t 0.025= 1.991

√
2 2
s1 s2
+ = 2.089039621
n1 n2

5. Do you see a need for larger sample sizes and more testing with the golf balls? Discuss.
Solution:
There is no need to increase the sample sizes because the data provide sufficient evidence to
compare two data sets.