Having completed the first Data Parsing Exercise and participated in class you are now somewhat familiar with Excel’s Pivot Tools.
The database contains information on land value, sales price, and sales price compared to land value plus the price of improvement.
You can use this data if you are a realtor, a seller or a buyer. However, each user will have a different question/s that they are looking to the data to answer.
You are to form five questions from one or more of these user perspectives. Using the data as developed through the Excel Pivot Tool find answers.
An example may be “[Buyer] I want to buy a house in a neighborhood where sales price returns the greatest return for the investment in land and improvements?” A realtor may ask. ” In what neighborhood am I most likely to earn the greatest commission for selling the houses?”
To develop your questions you will need to research the typical Real Estate market and what each stakeholder is thinking about.
You may collaborate to discuss this assignment however, you must submit your own work.
This exercise is designed to for gaining experience in handling data.
Use the SALES PRICE data to create a histogram. A histogram function exists in the ‘Data Analysis’ tool pack. If that is not available, you will need to create a frequency chart as has been presented in class.
Given that the distribution of the data is skewed to the right we need to use the central limit theorem concept to demonstrate that sampling will result in a normal distribution of sample means.
Create a column to the left of NBRHOOD and number each record from 1 to 420.
Use the RANDBETWEEN function to create a random starting point in the records for each of five samples of 30 each. Use systematic sampling to create the samples.
Calculate the sample means for each and graphically compare them to the mean for the population.
State whether you think that this exercise validated the Central Limit Theorem? Why or why not?