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Team Project- 2
Sai Sreenivas Madisetty (2204437), Mokssh Sharrma (2207677), Nefia Gagneja (2212185)
Navpriya Gill (2211952), Parmeshwar Singh Parmar (2218331), Neha Chandra (2209859), and
Navid Shaikh (2202728)
University Canada West
MBAF 502 - FALL22
Professor Abera Demeke
11th December 2022
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Question 1. What is the mean listing price of a home? Generate appropriate numerical
summaries for the listing price of a home, the sample standard deviation, etc. Use these
summaries to develop a 95% confidence interval to estimate the mean listing price of a house in
your selected city. That is, you will be using the sampling data you collected to estimate the
population parameter (listing price). Make sure to show both your calculations and a final
statement of its meaning.
Solution –
y= listing price NOTE:
The search on the MLS.CA website was done for:
Mean 942259.8
Residential properties, ' Detached House'. The search got
Standard Error 26416.14259 us 3 pages with 10 listings each for price ranges between
Median 994450 700000 - 1 Million. We chose 3 listings per page and thus,
Mode 999900 got a total of 10 listings from 3 pages.
Standard Deviation 83535.17758
Sample Variance 6978125894
Kurtosis 1.228396031
-
Skewness 1.402837508
Range 240000
Minimum 760000
Maximum 1000000
Sum 9422598
Count 10
Confidence
Level(95.0%) 59757.46605
ME 59209.22995 UCL 1001469.03
Mean 942259.8 LCL 883050.5701
Mean Error Formula Used= CONFIDENCE.NORM(alpha,standard_dev,size) 59209.23
Mean 942259.8 (As Calculated from Numerical Summaries)
UCL Mean+ME 1001469
LCL Mean-ME 883050.6
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Survey Area Vancouver City with borders North Vancouver- Coquitlam- Surrey, New
Borders Westminster & Richmond
Conclusion:
We are 95% Confident that the mean price listing is between CAD 1001469 & CAD 883050.6,
for the 'Attached Residential Houses' in Vancouver city with borders North Vancouver-
Coquitlam- Surrey, New Westminster & Richmond.
Question 2. The mean selling price of a house in Metro Vancouver is said to be $648,544. To
determine if this is true in your sample data, conduct a hypothesis test using a critical value
approach using 0.05 level of significance. Make sure to state the null and alternative hypotheses.
write a concluding statement about your results.
Solution -
Y= listing price
Mean 942259.8
26416.1425
Standard Error 9
Median 994450
Mode 999900
83535.1775
Standard Deviation 8
Sample Variance 6978125894
1.22839603
Kurtosis 1
-
1.40283750
Skewness 8
Range 240000
Minimum 760000
Maximum 1000000
Sum 9422598
Count 10
Confidence Level 59757.4661
(95.0%) 7
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Mean Selling Price
µ 648544
n 10
Step 1 Null and Alternate Hypothesis
H0: µ = 648544
H1: µ ≠ 648544
Step 2 Choosing α value
α = 0.05
Step 3 Finding t critical values
Degrees of
Freedom 9
To find Tcritical T.INV.2T(α,Degrees of freedom)
T critical 2.262157163
Step 4 Calculating t value
Tcal 11.11879976
Comparing tcalculated and
Step 5 tcritical
If Tcal > Tcrit then REJECT NULL Hypothesis
If Tcal < Tcrit then DO NOT REJECT NULL Hyothesis
Here Tcal > Tcritical so we REJECT
Conclusion:
Our random sample of 10 houses does provide sufficient evidence to reject the null hypothesis,
so we Reject the house in Metro Vancouver.
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Question 3. A survey found that 42% of small-business owners in Newlandiya were firstborn in
their family. To test this report, a random sample of 150 small-business owners was taken, and
54 of them were found to be firstborn. Perform a hypothesis test using alpha =0.01 to examine if
this proportion has changed recently using sample data.
Solution –
P 0.42
Pbar 0.36
n 10
Step 1 H0: P = 0.42
H1: P ≠ 0.42
Step 2 α 0.01
Step 3 Zcritical 2.575
Zcalculate -
Step 4 d 0.38443
Step 5 Zcritical > Zcalculated
p pH 0
zp
pH 0 ( 1 pH 0 )
n
Conclusion:
We don't reject the NULL hypothesis because Zcalculated is less than Zcritical. So, we accept
Null Hypothesis.
