University of Phoenix
RES/341 Research and Evaluation I
Descriptive Statistics: Real Estate
Does having a pool increase the price of houses that have the same number of bedroom? In order to answer that question, we divided our data set into two groups; houses with 1 to 3 bedrooms and houses with 4 and more bedrooms. We then compared the prices of houses with a pool to houses without a pool in each group. Different calculations were used to determine the central tendency, dispersion, and the skew of our data. The central tendency helps to simplify data and also to predict future results. We can use diverse calculations to measure it such as the mean, mode, and median. According to our sample of houses with 1 to 3 bedrooms, the mean price was higher of $4,060 for houses without a pool than with a pool. The same rule applies to houses with more than 4 bedrooms, but with a larger difference of $51,170. Another way we used to calculate the central tendency is by finding the median. The medians are also higher in each group for houses without a pool than those with a pool.
To better answer the above question, we also analyzed the skewness of our data in the two groups. . If we look at the two groups, houses with 1 to 3 bedrooms and houses with 4 or more bedrooms, the data seems to be skewed to the right because the mean is larger than the median. However, due to the small difference between the mean and the median, they might not represent significant skewness of our data. PLEASE COMPLETE AFTER THE GRAPHS ARE COMPLETED(NORMAL DISTRIBUTION? PEAKS? FLAT?)
In addition, we analyzed the dispersion of our samples. It seems, by looking at the ranges, that there is a wider range in prices for houses without a pool than with a pool. The variation and the standard deviation are also greater for houses without a pool. In each group, the median is relatively close to the mean, which means that the data are not too...