# Statistics and Mean Selling Price

Topics: Statistics, Statistical hypothesis testing, Student's t-distribution Pages: 7 (1046 words) Published: June 27, 2010
Exercise 01

a) Develop a 99 percent confidence interval for the mean selling price of the home. b) Develop a 95 percent confidence interval for the mean distance of the home is from the center of the city.

Exercise 02

a) A recent article in Bangladesh Observer indicated that the mean selling price of the homes in the city of Dhaka is more than Tk. 2200. Can we conclude that the mean selling price in the Gulshan area is more than Tk. 2200? Use the 0.01 significance level. What is the P-value? b) The same article reported the mean size was more than 2100 square feet? Can we conclude that the mean size of homes sold in the Gulshan area is more than 2100 square feet? Use the 0.05 significance level. What is the P-value?

Exercise 03

a) At the 0.05 significance level, can we conclude that there is a difference in the mean selling price of homes with a pool and homes without a pool? b) At the 0.05 significance level, can we conclude that there is a difference in the mean selling price of homes with an attached garage and homes without a garage?

Exercise 04

a) At the 0.01 significance level, is there a difference in the variability of the selling prices of the homes that have a pool versus those that do not have a pool? b) At the 0.02 significance level, is there a difference in the variability of the selling prices of the homes with an attached garage versus those that do not have an attached garage? c) At the 0.05 significance level, is there a difference in the mean selling price of the homes among the five Townships?

Exercise 01

Ans to Q no : a)

Table 01: Calculated 99 percent confidence intervals for the selling price of the home.

| |Test Value = 0 | | | | | |

|
| |t |df |Sig. (2-tailed) |Mean Difference |99% Confidence | | | | | | | |Interval of the | | | | | | | |Difference | |

|
| | | | | |Lower |Upper |

|
|selling price in |33.724 |49 |.000 |2226.0400 |2049.1430 |2402.9370 | |Tk. | | | | | | |

|
From here we can conclude that if we will take data 100 times from the data sheet then there will enough possibility that the value of the data will be between 2049.1430 to 2402.9370 at 99 times. But there will be one time the data may be out of this range.

Ans to the Q no: b)

Table 02: Calculated 95 percent confidence interval for the mean distance of the home is from the center of the city.

| |Test Value = 0 | | | | | |

|
| |T |df |Sig. (2-tailed) |Mean Difference |95% Confidence | | | | | | | |Interval of the | | | | | | | |Difference | |

|
| | | | | |Lower |Upper |

|
|Distance from the|19.706 |49 |.000 |14.50 |13.02 |15.98 | |center of the | | | | | | | |city |...

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