Answer to the q.

no 1(a)

Selection of class interval:

Variable: Selling price (X1)
Minimum: 139.9
Maximum: 345.3

Statistics
Selling Price in $000
N

Valid

39

Missing

new selling price

Cumulative
Frequency
Valid

Percent

Valid Percent

Percent

125-155

5.1

5.1

5.1

155-185

12.8

12.8

17.9

185-215

15

38.5

38.5

56.4

215-245

20.5

20.5

76.9

245-275

12.8

12.8

89.7

275-305

5.1

5.1

94.9

305-335

2.6

2.6

97.4

335-365

2.6

2.6

100.0

39

100.0

100.0

Total

The result shows that the highest frequency of selling price i.e. 15 lies in
between 185-215 and the lowest frequency of selling price i.e. 1 lies in
between 335-365.

Range=Max-min
=345.3-139.9
=169.3
Class width, w=30
Number of class =205.430=8
Answer to the q. no 1(b)

Statistics
Selling Price in $000
N

Valid

39

Missing

Mean

219.472

Median

209.700
209.3a

Mode
Std. Deviation

44.1273

Variance

1947.217

Range
Percentiles

205.4
9

170.640

10

173.600

25

189.400

50

209.700

75

243.700

a. Multiple modes exist. The smallest value is

shown

Comment:
Mean: Typical selling price of homes is about 219.472
Median: 50% of selling price is below 209.700 and 50% selling price is above it.
Mode: The selling price that occurs with most frequency is 209.3. That is maximum
number of homes are sold at $209.3.
Standard Deviation: The selling price of homes varies from the mean selling price by
$44.1273 on average.
Variance: Average variance of selling price is 1947.217.
Range (max-min): The range of selling price is 205.4
Quartile:
1st quartile: 25% of selling price is below 189.400 and 75% of selling price is above it.
2nd quartile: 50% of selling price is below 209.700 and 50% of selling price is above it.
3rd quartile: 75% of selling price is below 243.700 and 75% of selling price is above it.
10th percentile: 10% of selling price is below 173.600 and 90% of selling price is above
it.
9th decile: 90% of selling price is below 170.640 and 10% of selling price is above it.

Answer to the q. no 1(c)

Comment: 3rd no class shows the highest frequency and the normal curve tells us that the
Distribution is positively skewed or rightly skewed.

Answer to the q. no 1(d)

Comment: The pie chart illustrates the Variable Township of the real estate data provided. From the graph
we can state that, the maximum amount of real estate is located at DHANMONDI which is 28.21% of the
variable Township and the minimum amount of real estate located at Banani which is 10.26% of the variable
Township.

Comment: The Bar diagram illustrates the Variable Township of the real estate data provided. From the
graph we can state that, the maximum amount of real estate is located at DHANMONDI which is 28.21% of the
variable Township and the minimum amount of real estate located at BANANI which is 10.26% % of the
variable Township.

Answer to the q. no 2(a)

Statistics
Selling Price in $000
N

Valid

39

Missing

Skewness

.917

Std. Error of Skewness

.378

Comment: .917(skewness) > O. So, this is positively skewed.

Interpretation: The coefficient of skewness is greater than Zero (: .917 > 0). So the Normal distribution of
the variable selling price is positively skewed or rightly skewed.

Answer to the q. no 2(b)

Interpretation: The

on outlier.

box plot shows that there is 1 outlier and 17th position is

Answer to the q. no 3(a)

One-Sample Statistics

Distance from the

center of the city

Mean

Std.
Deviation

Std. Error
Mean

39

14.87

5.006

.802

One-Sample Test
Test Value = 0
95% Confidence Interval of the
Difference

Distance from the center of

df

Sig. (2-tailed)

Mean Difference Lower

Upper

18.552

38

.000

14.872

16.49

13.25

the city

Comment: We are 95% confident that mean distance the home is from the center of the
city confidence interval rages from (lower) 13.25 to(higher) 16.49.

Answer to the q. no 3(b)

Statistics
Garage attached
N

Valid

39

Missing

Garage attached
Cumulative

Valid

Frequency

Percent

Valid Percent

Percent

No

12

30.8

30.8

30.8

Yes

27

69.2

69.2

100.0

Total

39

100.0

100.0

From the output table we can obtain number of home with attached garage. The proportion of home with garage
attached,

p=

x
n

Where,

x= number of home with attached garage

n = sample size

Then, the confidence interval for the proportion of home with attached garage can be calculated manually.
So, the proportion of homes with attached garage,

P=

x
n

=2739
=0.69

Now 95% confidence Interval for proportion of homes with an attached garage becomes,

1 p/ n
p
=
P Z
=

.69 1.96 .69(1.69)/51

=.56 to .81
Interpretation: At the confident Interval 95%, the proportion of homes with an attached garage ranges from .56
to .81

Answer to the q. no 4(a)

Steo1: Statement of the hypothesis:
H0: <200
H1: > 200
Step-2: Here the level of significance is =0.01.
Step-3: The appropriate test statistics for this test is, t-test statistics.
Step-4: One sample T-test

One-Sample Statistics
Selling Price in $000

Mean

Std. Deviation

Std. Error Mean

39

219.472

44.1273

7.0660

One-Sample Test
Test Value = 200
99% Confidence Interval of the
Difference
Selling Price in $000

df

Sig. (2-tailed)

Mean Difference Lower

Upper

2.756

38

.009

19.4718

38.632

.312

P-value=.0012=.0005
Decision: Since, p-value <. we may reject null hypothesis at 1% level of significance
(Ho).
Comment: We can conclude that the mean selling price of the homes in the Denver area
is more than $200.

Answer to the q. no 4(b)

Step-1: Statement of the hypothesis:
H0: <2200
H1: > 2200
Step-2: Here the level of significance is =0.01.
Step-3: The appropriate test statistics for this test is t-test statistics.

Step-4:

One-Sample Statistics

Selling Price in $000

Mean

Std. Deviation

Std. Error Mean

39

219.472

44.1273

7.0660

One-Sample Test
Test Value = 2200
99% Confidence Interval of the
Difference

Selling Price in $000

df

Sig. (2-tailed)

Mean Difference Lower

Upper

-280.289

38

.000

-1980.5282

-1961.368

-1999.688

P-value=.0002=0
Decision: Since, p-value <. we may reject null hypothesis at 1% level of significance
(Ho).
Comment: We can conclude that the mean selling price of the homes in the Denver area
is more than $2200.

Answer to the q. no 5(a)

Step-1: Statement of the hypothesis:

H0: 1 = 2
H1: 12
Here,

1=Mean selling price of homes with pool.

2=Mean selling price of home without pool.

Step-2: Level of significance is =0.05

Step-3: The appropriate test statistics for this test is, t-test statistics.

Step-4: Sample mean test

Group Statistics

Selling Price in $000

Pool

Mean

Std. Deviation

Std. Error Mean

Yes

15

199.760

27.4361

7.0840

No

24

231.792

48.4476

9.8893

Independent Samples Test

Levene's Test for
Equality of
Variances

t-test for Equality of Means

95% Confidence
Interval of the
Difference

Selling

Equal

Price in

variances

$000

assumed

Sig. (2- Mean

Std. Error

Sig.

df

tailed)

Difference

Difference

Lower

Upper

3.713

.062

37

.025

-32.0317

13.7448

-59.8813

-4.1821

36.75 .012

-32.0317

12.1648

-56.6852

-7.3781

2.330

Equal

variances not

2.633 9

assumed

From the above we can say that two p-values are available. To choose there, we need to
perform another hypothesis.

STEP-1: State the null and alternate hypothesis

H0:12 = 22
Here,

H1: 1222
1 : Equal variance assumed
2

22: Equal variance not assumed

Step-2: Here, the level of significance =0.05
Step-3: F-statistics will be used here.
STEP 4: Select the sample, perform the calculation and taking decision
Since, P-Value (0.014) < - Value (0.05); we reject

H 0 , and unequal variance is assumed that means, 21

22 .

STEP 5: So assuming unequal variance P value for mean test is

Here, p value=.004
Decision: Since, p value (.004) <0.05
So, we reject

H 0 (Null Hypothesis). That means 1 = 2 .

That is, there is difference in the variability of the selling price of homes that have a pool,
versus those that do not have a pool.
Comment: We may conclude that, there is difference in the mean selling price of homes
with pool and without pool.

Answer to the q. no 5(b)

Step-1: Statement of the hypothesis:
H0: 1 = 2
H1: 12
Here,

1=Mean selling price of homes in township 1.

2=Mean selling price of home in township 2.

Step-2: Level of significance is =0.05

Step:3: The appropriate test statistics for this test is, t-test statistics.

STEP 4: Select the sample, perform the calculation and taking decision

Group Statistics

Selling Price in $000

Garage
attached N

Mean

Std. Deviation

Std. Error Mean

No

12

189.525

25.7408

7.4307

Yes

27

232.781

44.3591

8.5369

Independent Samples Test

Levene's Test for
Equality of
Variances

t-test for Equality of Means

95% Confidence
Interval of the
Difference
Sig. (2- Mean

Std. Error

tailed)

Difference

Difference

Lower

Upper

.566

-8.5250

14.5038

-39.6326

22.5826

Equal

-.58 13.43 .566

-8.5250

14.5038

-39.7552

22.7052

variances not

Selling

Equal

Price in

variances

$000

assumed

Sig.

df

.299

.593

-.58 14
8

assumed

From the above we can say that two p-values are available. To choose there, we need to
perform another hypothesis

Step-1: State the null and alternate hypothesis

H0:12 = 22
Here,

H1: 1222
1: Equal variance assumed
2: Equal variance not assumed

Step-2: Here, the level of significance =0.05

Step-3: F-statistics will be used here.
Step-4: Formulate the decision rule
P < , we may reject

H0

P > , we may not reject

H0.

Here, P-value for variance test is .593>(0.05). Null-hypothesis is not rejected(H0) and
equal variance is assumed.
Comment: So, 12=22 equal variances is assumed.
That is, there is no difference in the variability of the selling price of homes in township 1,
versus those homes in township2.
Decision: Assuming equal variance, the p-value for t-test is 0.566 >(0.05), so for mean
test we may not reject null hypothesis(H0).
Comment: We may conclude that, there is no difference in the mean selling price of
homes in township1 and township2.

Answer to the q. no 6(a)

Step-1: Statement of the hypothesis:
H0: 12 = 22
H1: 1222
Here,

12: Variance of selling price with garage

22: Variance of selling price without garage

Step-2: Level of significance is =0.02

Step-3: F-statistics will be used here.
Step-4: Select the sample, perform the calculation and taking decision

Group Statistics

Selling Price in $000

Garage
attached N

Mean

Std. Deviation

Std. Error Mean

No

12

189.525

25.7408

7.4307

Yes

27

232.781

44.3591

8.5369

Independent Samples Test

Levene's
Test for
Equality of
Variances t-test for Equality of Means
98% Confidence
Interval of the
Difference

Sig. t

df

Selling Equal
2.600 .115 37
Price variances
3.137
in $000 assumed
Equal
variances
not
assumed

Sig.
(2Mean
Std. Error
tailed) Difference Difference Lower

Upper

.003

-43.2565

13.7895

-9.7280
76.7850

34.081 .001
3.822

-43.2565

11.3179

70.8819 15.6310

Decision: P-value .115 > (0.02). Null-hypothesis is not rejected

H0 .

Comment: We may conclude that, there is no difference in the mean selling price of
homes with an attached garage versus those not have an attached garage.

Answer to the q. no 6(b)

Step-1: Statement of the hypothesis:
H0: 1=2=3=4=5
H1: All the means are not same.
Here,

1= The mean selling price of the homes at Gulshan.

2= The mean selling price of the homes at Uttara.
3= The mean selling price of the homes at Dohs.
4= The mean selling price of the homes at Dhanmondi.
5= The mean selling price of the homes at Banani.

Step-2:Level of significance is =0.05

Step-3:F-statistics will be used here.
Step-4:Formulate the decision rule
P < ,
P ,

H 0 is rejected.
H 0 is not rejected

STEP 5: Select the sample, perform the calculation and taking decision.

ANOVA
Selling Price in $000
Sum of Squares

df

Mean Square

Sig.

Between Groups

15994.137

3998.534

2.344

.074

Within Groups

58000.102

34

1705.885

Total

73994.239

38

Decision:Since P-value (0.074) > 0.05. So we may not reject

H0 .

Comment: There is no difference in the mean selling price of the homes among the five
townships.

Answer to the q. no 7(a)

Model Summary

Mode
l
R
1

.465a

Adjusted R
R Square Square

Std. Error of
the
Estimate

.216

39.5850

.195

a. Predictors: (Constant), Size of the home in

square feet

ANOVAb
Sum of
Squares

df

Mean
Square

Sig.

Regressio 16016.182
n

16016.182

10.221

.003a

Residual

57978.057

37

1566.975

Total

73994.239

38

Model
1

a. Predictors: (Constant), Size of the home in square feet

b. Dependent Variable: Selling Price in $000

Coefficientsa

Unstandardized
Coefficients

Standardize
d
Coefficients

Std. Error

Beta

(Constant)

38.000

57.115

Size of the home in

square feet

.082

.026

Model
1

.465

Sig.

.665

.510

3.197

.003

a. Dependent Variable: Selling Price in $000

Dependent Variable, Y= Selling price.

Independent variable, X= Size of the home.
Now, regression equation becomes,

Y^

= a + bx

= 38+ 0.082x.
If size of the home is increased by 1 square feet selling price will be increased by 0.085
thousand tk.
Estimate the selling price for home with an area of 2200 square feet;

Y^

= a + bx

= 38 + 0.082*2200
= 218.4
Comment:If size of the home is increased by 2200 square feet, selling price will be increased by 221.717tk.

Answer to the q. no 7(b)

ANOVAb
Sum of
Squares

df

Mean
Square

Sig.

Regressio
n

8535.652

8535.652

4.825

.034a

Residual

65458.587

37

1769.151

Total

73994.239

38

Model
1

a. Predictors: (Constant), Distance from the center of the city

b. Dependent Variable: Selling Price in $000

Coefficientsa

Unstandardized
Coefficients
Model
1

Std. Error

(Constant)

263.994

21.359

Distance from the

center of the city

-2.994

1.363

Standardize
d
Coefficients
Beta

-.340

Sig.

12.360

.000

-2.197

.034

a. Dependent Variable: Selling Price in $000

Dependent Variable, Y= Selling price.

Independent variable, X= Distance from center of the city.
Now, regression equation becomes,

Y^

= a + bx

= 263.994+ (-2.994)x
If size of the home is increased by 1 square feet selling price will be decreased by 2,994
thousand tk.
Estimate the selling price for home with an area of 2200 square feet;

Y^

= a + bx

= 263.994 + [(-2.994)*20]
= 204.114
Comment: If size of the home is increased by 2200 square feet, selling price will be
increased by

204.114tk.

Answer to the q. no 7(c)

Step:1:Statement of the hypothesis:
H0: p > 0; correlation coefficient is not negative.
H1: p < 0; correlation coefficient is negative.
Step-2: Level of significance =0.05
Step-3: F-test statistic will be used here
Step-4:Formulate the decision rule

H 0 is rejected.

P < ,

P ,

H0

is not rejected

Step-5:

Correlations

Selling Price in $000

Pearson Correlation

Selling Price in
$000

Distance from
the center of
the city

-.340*

Sig. (1-tailed)
N
Distance from the center of Pearson Correlation
the city
Sig. (1-tailed)
N

.017
39

39

-.340*

.017
39

*. Correlation is significant at the 0.05 level (1-tailed).

Pearson correlation= -.340

Here, p-value= .017
Decision:Since p-value (.000) < (0.05).

39

So we may reject null hypothesis (

H 0 ) at 5% level of significance.

Comment: We may conclude that the correlation of distance from the center of the
city and selling price is negative (-.340).
Moreover, the p-value of the test of correlation coefficient is (.017), which indicates that
the test of correlation coefficient is negative at 5% level of significance.