Question

Spring_Valley   AU_Park
1375            910
1399            935
1450            1160
1270            800
970             910
1350            1020
925             1020
875             860
1000            850
1120            873
1130            1300
1200            1100
830              795
1300            1220
1220            985
925             1060
885             1040
1560             925
1380            1450
1250            1350
900             1280
900             1160
1150             975
1440             950
930              795

A) Calculate the summary statistics for both Spring Valley and AU Park. Enter the values that you calculate into the table below. Report the values to 2 decimal places.

Summary Statistics:

Column	n	Mean	Std.dev.	Median
Spring Valley
AU Park

B) What can you infer about the shape of the distribution of Spring Valley house prices by looking at the summary statistics you calculated in part c.

C) is there a difference in house prices in Spring Valley versus AU Park at α = 0.05.

(i) State the hypothesis that you want to test.

(ii) Record the value of the test statistic and its p-value.

(iii) What do you conclude for the test at α = 0.05?

D) Compute a 95% confidence interval for the difference in the mean house prices between Spring Valley and AU Park. Interpret your interval.

Answer 1

A) Calculate the summary statistics for both Spring Valley and AU Park. Enter the values that you calculate into the table below. Report the values to 2 decimal places.
Put the data in excel and find the values as shown

B) What can you infer about the shape of the distribution of Spring Valley house prices by looking at the summary statistics you calculated in part c.

In case of Spring Valley we find that mean and median is equal, hence the data is normally distributed.

But in case of AU Park, mean is greater than median,indicating that the data is positively skewed. Hence the in the distribution we will find most of the value towards the left or lower end of the curve and a few extreme values to the right.

C) is there a difference in house prices in Spring Valley versus AU Park at α = 0.05.

(i) State the hypothesis that you want to test.

(ii) Record the value of the test statistic and its p-value.

(iii) What do you conclude for the test at α = 0.05?

D) Compute a 95% confidence interval for the difference in the mean house prices between Spring Valley and AU Park. Interpret your interval.