Instructions Part 1.1 | Part 1.2 | Part 1.3 | Part 1.4 | Part 1.5 | Part 2 |
Residents of Melbourne are complaining about the high cost of housing within a 41-kilometer radius (about 25 miles) of the Central Business District, saying that even apartments are too expensive to purchase. Residents are pressuring city government leaders to address the need for affordable housing. At the same time, real-estate investors are downplaying the residents’ concerns, saying that in fact, housing is affordable in Melbourne, and the real-estate investors are encouraging city-government leaders to focus their efforts on other issues of concern. Both the residents and real-estate investors presented their findings on apartment prices before the city government leaders. Your job is to determine the validity of each of their findings and to report your findings in the form of your own letter to city government officials. The summary of the data that the residents of Melbourne collected can be found in the Resident – data document [DOWNLOAD]. The summary of the data that real-estate investors collected can be found in the Real Estate Investors – Data [DOWNLOAD].
Set Up Google Sheets and a Google Doc for Part 2
Copy the Google Sheet containing the Property Prices – Part 2 Data (opens in new window) (information from 4296 apartments) and the pre-labeled tabs in which you will perform pertinent computations for the second part of the assignment.
Rename your copy of the Google Sheet using your username, and share your copy of the spreadsheet with your professor.
Copy the Google Slides – Part 2 (opens in new window – select use template) to use as a template for presenting your work for Part 2 of the assignment.
Rename your copy of the Google Slides file using your username, and share your copy of the slides with your professor.
Generate a Random Sample from the Data Set
In TAB 4 of the Google Sheet – you will generate a simple random sample of 300 data values from the data set to be used for the remainder of this Final Assignment. Copy the original data set provided for you (TAB 1) and paste that entire data set into TAB 4. To do this, select inside the blank box in the top left corner of the spreadsheet. This will select all the cells. Then, right-select click to copy the data. Paste the data by selecting “Paste” in cell A1 in TAB 4.
In cell I1 of TAB 4 label the column Random_Number. In cell I2, use the function =RANDBETWEEN(0,1000000) to generate a random number between zero and a million. Copy this fuction down column I, so that every row (2 through 4297) has a random number. Copy all of the random numbers in column I and then use Paste values only (CTRL+Shift+V) in column I, which will keep the random numbers from changing. Freeze the first row containing all the labels. Sort the entire sheet in TAB 4 based on the random numbers generated in column I. Use the first 300 rows as your random sample (2 through 301). You must delete rows 302 through 4297.
Find and Interpret the 95% Interval for the Mean Apartment Price in Melbourne
Copy the PRICE column from your random sample of apartment prices and paste it in Column A of TAB 5. Note that pertinent statistics will automatically be calculated for you, including the 95% confidence interval.
As part of your presentation to city government officials (Google Slides – Part 2), state and interpret the 95% confidence interval for the mean apartment price in Melbourne. Additionally, make reference to any other statistics that you deem important in your own analysis of apartment prices. Review Chapter 8 of your text for reference on how to interpret the confidence interval. Make a recommendation to the city government leaders regarding the accuracy of the information that the residents provided in light of your confidence interval and data.
Conduct a One-Sample Hypothesis Test of the Mean Individual Apartment Price in Melbourne
According to the data that the real-estate investors collected, the mean individual apartment price within a 41-kilometer (about 25 miles) radius of the Central Business District of Melbourne is $453,993.94. You are going to use a hypothesis test to determine whether the true mean apartment price is higher than $453,993.94. Assume that apartment prices are normally distributed.
i. The null and alternative hypotheses are as follows:
H0: =$453,993.94
HA: >$453,993.94
Use your sample of n = 300 and your mean to conduct a hypothesis test using a 5% level of significance to determine if the mean apartment price is more than $453,993.94. Refer to example 9.16 from your text for additional guidance.
As part of your presentation to city government officials (Google Slides – Part 2), explain the results of the one-sample hypothesis test conducted based on your data, and determine whether or not to reject the null hypothesis. Additionally, make reference to any other statistics that you deem important in your own analysis of apartment prices. In light of your analysis, make a recommendation to the city government leaders regarding the accuracy of the information that the real-estate investors provided.
Conclusion
Write a meaningful conclusion that summarizes your findings regarding both the residents and real-estate investors and make your own recommendation to the city government officials about apartment prices within 41-kilometers of the Central Business District of Melbourne.
Ethical Considerations of Statistics
In your Google Slides – Part 2 presentation, reflect on the tension between the pressure to manipulate data to support an existing desired outcome and employing proper statistical techniques to determine an outcome that is in line with ethical statistical practices and a Christian worldview in the context of the provided scenario regarding real-estate investors and city residents. See the Ethical Guidelines for Statistical Practice (opens in new window). For context about a Christian worldview in regard to work and communication of information, review this link from Truth, Honesty and Deception in the Workplace: Overview opens in new window). Pay special attention in this article to the introduction, conclusion, Truthtelling in the Bible (opens in new window), Why Truthtelling is Important (opens in new window), and There May Be Exceptions to Truthtelling in the Workplace (opens in new window).
Submit a link to your shared presentation in Google Drive.
Resources
How to Share and Submit a Copy of Sheets and Slides [00:02:17]
Requirements
300-500 words in a new Google Slides File template (6 slides) in addition to the outlined deliverables in the slide template and instructions
Before you submit a file…
Check your document for spelling and grammatical errors.
Refer to your course syllabus (opens in new window) for details on grading criteria and the university’s late work policy.
