Introduction

This analysis is done to examine the relationship between the selling price of properties and their sizes in

square feet. Pacific region was selected and a random sample of 30 data values was created for analyzing. Then

scatter plot was created in Excel and selected most suitable trend line with its equation as well as the R square

value. Future prediction is also done using the obtained regression equation.

Representative Data Sample

A random sample of 30 data values is created using simple random sampling method.

Region State Country Median Median $'s Median

listing per square square
price(y) foot feet(x)
Pacific ca Alameda $830,040 $536 1538
Pacific ca Kings $264,535 $150 1747
Pacific ca Los Angeles $773,136 $458 1795
Pacific ca Nevada $513,832 $256 2242
Pacific ca Placer $578,364 $263 2230
Pacific ca Riverside $436,100 $215 2102
Pacific ca Sacramento $416,395 $237 1715
Pacific ca San Diego $705,563 $391 1835
Pacific ca San Joaquin $425,003 $223 1914
Pacific ca San luis obispo $728,005 $381 1901
Pacific ca Sonoma $756,559 $432 1740
Pacific ca Sutter $341,454 $187 1862
Pacific ca Sehama $337,342 $188 1718
Pacific ca Ventura $742,686 $376 1993
Pacific ca Yolo $514,608 $281 1859
Pacific hi Yawaii $454,842 $318 1531
Pacific hi Honolulu $690,681 $544 1203
Pacific hi Maui $949,479 $698 1407
Pacific or Clackamas $531,198 $226 2424
Pacific or Deschutes $511,295 $247 2095
Pacific or Washington $489,592 $230 2158
Pacific or Yamhill $449,835 $215 2149
Pacific wa Clark $453,766 $205 2250
Pacific wa Franklin $314,416 $164 1975
Pacific wa Grant $285,787 $150 1844
Pacific wa King $714,059 $389 2023
Pacific wa Kitsap $468,764 $218 2180
Pacific wa Pierce $436,486 $207 2201
Pacific wa Skagit $454,003 $232 1957
Pacific wa Yakima $313,651 $156 1977
Mean, median and standard deviation are calculated for median listing price and median square feet

Variable Mean Median Standard deviation

Median listing price $529,383 $479,178 178,225.64

Median square feet 1919 1935 272.93

Data analysis

To compare the sample with the population, following table can be used.

Variable Mean Median Standard

deviation
Median listing National(Population) $288,407 $256,936 163,986
price
Regional(Sample) $529,383 $479,178 178,225.64
Median square National(Population) 1944 1901 367
feet
Regional(Sample) 1919 1935 272.93

As per the above table, mean of the median listing price of the sample is more deviated from the population

mean. Median of the sample is also significantly less the median of the national value. Population is more

precise than the sample as the standard deviation of the national median listing price is less than that of

regional median listing price.

Considering the median square feet data, statistics of both sample and population have lesser deviations from

each. Sample mean is smaller than the average national median square feet. But, median is larger in the

population. Sample standard deviation is less than the population standard deviation for median square feet

data set.

As per above explanation, we can conclude that median square feet data set is comparatively better one. The

population of median square feet data is symmetrical normally distributed while the population of median

listing price data is right skewed.

How sample is made?

Sample is made as per simple random sampling method. First the data set is numbered from 1 to 89. Numbered

paper chits from 1 to 89 and mix them properly. After that, take one chit and noted the number and related data

value was selected for the sample. This was done 30 times to make a sample of 30 data values.

Since all data values had equal chance to be selected and the sample size is greater than 30, we can consider

this as a simple random sample.

Scatter plot

Median listing price verses median square

feet
$1,000,000
$900,000
$800,000
f(x) = 0.408843646415661 x² − 1720.31351579004 x + 2295609.29534182
$700,000 R² = 0.160543965429957
Median listing price

$600,000 Series2
$500,000 Polynomial (Series2)
$400,000
$300,000
$200,000
$100,000
$0
1000 1200 1400 1600 1800 2000 2200 2400 2600
Median square feet

R square value is 0.160

Regression equation
2 6
y=0.408 x −1720 x +2× 10

The pattern

Median square feet is the independent variable(x) while median listing price is the dependent variable(y).

Independent variable is always used for predictions as y is always depending on the value of x.
As the correlation coefficient is very lower value, relationship or correlation is not strong for these two

variables. So, we can conclude that association of median listing price and median square feet is very poor.

Shape of the curve is nonlinear. So the polynomial curve which the best fit line is selected to calculate

regression equation and the R square value.

There are no outliers in this sample. Outlier is a data which deviated 1.5 times more or less of inter quartile

range from the 3rd quartile. None of data satisfy that requirement.

Prediction is done for the x value of 1200 square feet

y=0.408 x 2−1720 x +2× 106

y=0.408(1200)2−1720(1200)+ 2× 106

y=523,520

So the listing price for 1200 square feet is $523,520