Week 2 One-Sample Hypothesis Team Paper (Real Estate) Teacher's Comments
Week 2 One-Sample Hypothesis Team Paper (Real Estate) Teacher's Comments
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Date Created: 11/15/15
Real Estate Hypothesis Testing 1 Real Estate Hypothesis Testing Learning Team B RES342 Research and Evaluation II Date Teacher Real Estate Hypothesis Testing 2 Real Estate In 2011, real estate agents are facing challenges when providing potential sellers with accurate comparative market analysis that highlights information regarding the suggested sales price of the seller’s home. Today’s real estate market is competitively priced due to the recent changes in United States economy. Team B will evaluate the range of the true mean sales price of homes based on the sales pricing of homes in the sample data. The team will begin the research by stating the purpose and performing a fivestep hypothesis test based on the mean sales price of homes listed in the data sample. The fivestep hypothesis process will consist of stating the hypothesis, stating the decision rule, calculating the expected frequencies, calculating the test statistic, and making the decision. Learning Team B will attempt to evaluate the range of the true mean sales price of homes based on the sales pricing of a sample of 105 homes. Furthermore, the team will hypothesize that the actual mean sales price of homes is greater than $220,000. The mean sales price in the sample population is $221,103. Statement of Hypothesis Learning Team B is using a hypothesis test of one mean with the true population mean being hypothesized as $220,000 and comparing it against the sample mean of $221,103. The null hypothesis: The true mean sales price of homes that are sold is not greater than $220,000. The alternate hypothesis is that the true mean sales price of homes is greater than $220,000. The null hypothesis states that H(0): μ < = $220 the alternate hypothesis states that H(1): μ > $220. Decision Rule The decision rule is: Reject the null if z>1.645, or fail to reject the null and accept the alternate hypothesis if z<1.645 Real Estate Hypothesis Testing 3 To achieve the desired results, Learning Team B will use the fivestep hypothesis test: Step 1: State the null hypothesis and the alternate hypothesis. The null hypothesis states that H(0): μ < = $220 the alternate hypothesis states that H(1): μ > $220 Step 2: The level of significance is .05 Step 3: Because the sample is large we can use the z distribution as the test statistic Step 4: H0 is rejected if z> 1.65 or if p<.05 Step 5: Make a decision and interpret the results Hypothesis Test: Mean vs. Hypothesized Value 220.0000 Hypothesized value 221.1029 Mean Price 47.1054 Standard deviation 4.5970 Standard Error 105 n 0.24 z .4052 pvalue (onetailed, upper) 212.0929 confidence interval 95.% lower 230.1128 confidence interval 95.% upper 9.0100 margin of error As a result, Z<1.65 and p>.05; therefore, 0 is accepHed . Where: Test statistic: Real Estate Hypothesis Testing 4 The test statistic is not greater than 1.645: 0.24 Rejection We can’ reject the null hypothesis, and we can stay that the mean price is greater than 220,000 dollars. Descriptive statistis Price Count 105 Mean 221.103 Sample variance 2,218.919 Sample standard deviation 47.105 Real Estate Hypothesis Testing 5 Minimum 125 Maximum 345.3 Range 220.3 Sum 23,215.800 Sum of squares 5,363,847.300 Deviation sum of squares (SSX) 230,767.589 Population variance 2,197.787 Population standard deviation 46.881 Standard error of the mean 4.597 Confidence interval 95.% lower 211.987 Confidence interval 95.% upper 230.219 Halfwidth 9.116 Empirical rule Mean 1s 173.997 Mean + 1s 268.208 Percent in interval (68.26%) 67.6% Mean 2s 126.892 Mean + 2s 315.314 Percent in interval (95.44%) 95.2% Mean 3s 79.787 Mean + 3s 362.419 Percent in interval (99.73%) 100.0% Real Estate Hypothesis Testing 6 Tolerance interval 99.73% Lower 79.787 Tolerance interval 99.73% Upper 362.419 Halfwidth 141.316 Skewness 0.474 Kurtosis 0.277 Coefficient of variation (CV) 21.30% 1st Quartile 187.000 Median 213.600 3rd quartile 251.400 Interquartile Range 64.400 Mode 188.300 Low Extremes 0 Low outliers 0 High Outliers 0 High Extremes 0 Suggested Interval width 20 Normal Curve GOF pvalue .0718 Chisquare (df=5) 10.12 E 13.13 O(1.15) 9 O(0.67) 23 O(0.32) 12 O(+0.00) 14 O(+0.32) 10 Real Estate Hypothesis Testing 7 O(+0.67) 12 O(+1.15) 11 O(inf.) 14 Stem and Leaf plot for Price stem unit = 100 leaf unit = 10 Frequency Stem Leaf 42 1 2 2 3 4 5 5 6 6 6 7 7 7 7 7 7 7 7 7 7 7 7 7 8 8 8 8 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 56 2 0 0 0 0 0 0 0 0 0 0 1 1 1 1 2 2 2 2 2 2 2 2 2 3 3 3 3 3 4 4 4 4 4 4 4 4 5 5 5 5 5 6 6 6 6 6 7 7 7 8 8 9 9 9 9 9 7 3 0 1 1 1 2 2 4 105 Real Estate Hypothesis Testing 8 Conclusion B y analyzing the provided real estate data set, Team B has arrived at a conclusion that will assist sellers with current market data regarding the suggested sales price of their homes. The stated hypothesis question Team B proposed was to determine if based on the sample mean of the 105 home data set, the true mean sales price of homes sold the greater than $220,000. Furthermore, Team B proceeded by applying the 5 step hypothesis testing process which included; (1) stating the null hypothesis (H0: μ < = $220) and the alternate hypothesis (H 1 μ > $220), (2) selecting a level of significance of 0.05, (3) calculating and selecting the test statistic of 0.024, (4) formulating a decision rule that specifies rejecting the null hypothesis if z > 1.645, and (5) making a decision and interpret the result. The results, according to the Team B research indicates z < 1.65 and p > 0.05 therefore the final conclusion is H0 the null hypothesis is accepted which says that the true mean of homes is not greater than $220,000. Content and Organization Percent Comments: 70 Percent Earned: X/4.2 Learning Team Papers 4.1 All of the items were addressed All key elements of the assignment are covered in a as required. substantive way as noted in the syllabus. Real Estate Hypothesis Testing 9 The content is comprehensive, accurate, and/or persuasive. The paper develops a central theme or idea, directed toward the appropriate audience. The paper links theory to relevant examples of current experience and industry practice and uses the vocabulary of the theory correctly. Major points are stated clearly; are supported by specific details, examples, or analysis; and are The process is organized logically. fine and the The introduction provides sufficient background on the outcome topic and previews major points. appropriate. Should include The conclusion is logical, flows from the body of the paper, and reviews the major points. a course material citation in the body of the paper to Readability and Style Percent Comments: 15 Percent Earned X / 0.9 0.89 Good job on the construction Paragraph transitions are present and logical and of the paper; maintain the flow throughout the paper. however, avoid The tone is appropriate to the content and assignment. contractions Sentences are complete, clear, and concise. Sentences are wellconstructed, with consistently strong, varied sentences. Sentence transitions are present and maintain the flow of thought. Mechanics Percent Comments: 15 Percent Earned X / 0.9 Real Estate Hypothesis Testing 10 0.85 All items were addressed The paper, including the title page, reference page, except as noted tables, and appendices, follow University of Phoenix above. incremental formatting guidelines. Citations of original works within the body of the paper follow University of Phoenix incremental formatting guidelines. The paper is laid out with effective use of headings, font styles, and white space. Rules of grammar, usage, and punctuation are followed. Spelling is correct. Total Points Earned Additional Comments: 6 Points XX/6 5.84 A good job overall team. There is a comprehension of the process and the use of MegaStat demonstrates an understanding. Consider how this onesample test of hypothesis may be used in reallife situations.
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