Data Set Exercise

Data Set Exercise – 20 points each
Use the Data Sets found in Appendix A in the back of your book to complete the following exercises.

1. Refer to the Real Estate data, which report information on homes sold in the Goodyear, Arizona, area last year. Consider the following variables: selling price, number of bedrooms, township, and distance from the center of the city.

a. Which of the variables are qualitative and which are quantitative?

b. Determine the level of measurement for each of the variables.

2. Refer to the Real Estate data, which reports information on homes sold in the Goodyear, Arizona, area during the last year. Select an appropriate class interval and organize the selling prices into a frequency distribution. Write a brief report summarizing your findings. Be sure to answer the following questions in your report.

a. Around what values do the data tend to cluster?

b. Based on the frequency distribution, what is the typical selling price in the first class? What is the typical selling price in the last class?

c. Draw a cumulative frequency distribution. How many homes sold for less than $200,000? Estimate the percent of the homes that sold for more than $220,000. What percent of the homes sold for less than $125,000?

d. Refer to the variable regarding the townships. Draw a bar chart showing the number of homes sold in each township. Are there any differences or is the number of homes sold about the same in each township?

3. Refer to the Real Estate data, which reports information on homes sold in the Goodyear, Arizona, area during the last year. Prepare a report on the selling prices of the homes. Be sure to answer the following questions in your report.

a. Develop a box plot. Estimate the first and the third quartiles. Are there any outliers?

b. Develop a scatter diagram with price on the vertical axis and the size of the home on the horizontal. Does there seem to be a relationship between these variables? Is the relationship direct or inverse?

c. Develop a scatter diagram with price on the vertical axis and distance from the center of the city on the horizontal axis. Does there seem to be a relationship between these variables? Is the relationship direct or inverse?

The software that is recommended to complete these exercises is MegaStat for Microsoft Excel. This was developed by J.B. Orris and is a full-featured Excel add-in that is available at www.mhhe.com/megastat. It will work with Excel 2003, 2007, and 2010. After you access the website you have 10 days to successfully download MegaStat on your local computer. Once installed, MegaStat will remain active in Excel with no expiration date or time limitations. The software performs statistical analysis within an Excel workbook. It does basic functions, such as descriptive statics, frequency distribution, and probability calculations as well as hypothesis testing, ANOVA, and regression. Screencam tutorials are included that provide a walkthrough of major business statistics topics. Help files are built in, and an introductory user’s manual is also included.

However if you use and have access to Minitab, SPSS, or JMP you can use these software tools to solve the business statistics exercises in the text.

Submit the completed Assignment to your Faculty Mentor. Make sure to label the files correctly.