Question

The Data

The real estate markets, around the United States, have been drastically changing since the housing crisis of 2008. Many experts agree that there has never been a time where the market was so friendly to low interests rates and home prices for prospective buyers. Your task, in this project, is to investigate the housing market in the county that you current reside.

Objective 1 (35 points)

Using the website, www.zillow.com, randomly select 35 homes and record the price of each home. In the space below, clearly define how you randomly selected these homes and provide a table with the home costs you selected.

Answer= I selected these homes in the area code from which I reside within a 25 mile radius. The homes selected were the ones listed as the newest houses on zillow.

$99,900	$149,800	$382,900	$335,900	$475,000	$140,000	$299,000
$199,000	$79,990	$150,000	$125,000	$489,000	$389,900	$199,900
$389,000	$289,900	$79,900	$382,000	$279,900	$249,900	$274,500
$475,000	$285,000	$235,000	$362,000	$162,300	$595,000	$149,000
$64,900	$165,000	249,900	$589,000	$489,900	$575,000	$229,900

Objective 2 (20 points)

• Compute the following:

The average home price for your sample

The standard deviation home price

• Using complete sentences, define the random variable .

• State the estimated distribution to use. Use complete sentences and symbols where appropriate.

Objective 3 (20 points)

Respond to each of the following

• Calculate the 90% confidence interval and the margin of error.

• Interpret this confidence interval.

Objective 4 (25 points)

Using your data set, calculate four additional confidence intervals and margins of error at the levels of confidence given below:

• 50%

• 80%

• 95%

• 99%

What happens to the margin of error as the confidence level increases? Does the width of the confidence interval increase or decrease? Explain why this happens.

Answer 1

We use minitab to solve this question-

Average=$288208
Standard Deviation=$153227
Random varible is home price
The estimated distribution t distribution by assuming normality of random variable.
The 90% Confidence Interval is,(254358, 322058)
Interpritation- we select 100 Homes then approximately 90 of them are in the (254358, 322058)
Margin of errors remains same but width of confidence interval increases as the cofidence level increases.