Real Estate Managerial Report (MTH410)
MTH410: Quantitative Business Analysis Portfolio Project
The portfolio project for MTH410 consists of two separate case studies:
Part 1: Gulf Real Estate Properties, worth 160 points Part 2: Bayview case study, worth 350 points.
Total points for the entire portfolio project = 510 points
The two parts should be submitted together in one file. For both projects you are required to submit an Excel spreadsheet. You may submit those separately but be sure to name the files appropriately.
Part 1: Gulf Real Estate Properties (160 points)
Gulf Real Estate Properties, Inc., is a real estate firm located in southwest Florida. The company, which advertises itself as an “expert in the real estate market,” monitors condominium sales by collecting data on location, list price, sale price, and number of days it takes to sell each unit. Each condominium is classified as Gulf View if it is located directly on the Gulf of Mexico or No Gulf View if it is located on the bay or a golf course, near but not on the Gulf. Sample data from the Multiple Listing Service in Naples, Florida, provided sales data for 40 Gulf View condominiums and 18 No Gulf View condominiums. The complete data set is in the file named Real Estate.
Managerial Report
Prepare a report ( see below) that summarizes your assessment of the nature of the housing market in southwest Florida. Be sure to include the following seven (7) items in your report.
1. Use appropriate descriptive statistics (5-number summary, mean, mode, range and standard deviation) to summarize each of the three variables for the 40 Gulf View condominiums. Are there any outliers in the data set for any of the three variables? If there are any outliers in any category, please list them and state for which category they are an outlier. Describe which method you used to determine if there were or not.
2. Use appropriate descriptive statistics (5-number summary, mean, mode, range and standard deviation) to summarize each of the three variables for the 18 No Gulf View condominiums. Are there any outliers in the data set for any of the three variables? If there are any outliers in any category, please list them and state for which category they are an outlier. Describe which method you used to determine if there were or not.
3. Compare your summary results from #1 & #2. Discuss any specific statistical results that would help a real estate agent understand the condominium market.
Real Estate Managerial Report
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Real Estate Managerial Report
Introduction
In today’s business world, conducting market surveys is important as far as the success of the company is concerned. It is not an exemption for Gulf Real Estate Property Company. The company must conduct regular market surveys to identify the performance of its different products. This information helps any company to re-strategize thus promoting its competitiveness. Information relating to the sale price and the number of days that a company takes before selling a unit is important as far as decision-making is concerned. This paper analyzes data relating to the location, sale price, list price, as well as, the number of days the company takes before selling one unit of condominiums.
Descriptive statistics
List price
5-number summary
The five-number, summary is a key descriptive statistics, which involves calculating the minimum figure, the maximum figure, the first quartile, the third quartile and the median. It gives an individual the general view of the data. It as well helps one to calculate some statistics, for example, the inter quartile range.
The minimum = 200
The maximum = 962
The median = 639
1st quartile = 467.5
3rd quartile = 834
The minimum value is 200 indicating that the lowest list price for the condominiums is 200. The maximum list price is 639, which is the highest price that the real estate experts are willing to sell the condominiums. The median is 639, which is the average price for the condominiums. On the other hand, the first quartile and the third quartiles are 467.5 and 834 respectively. They can help in the inter-quartile range, which is 366.5.
The mean
The mean for the list price is 629, meaning that the average price on the list for the condominiums is 629. In other words, the real estate firm is willing to sell its condominium at 629, on average.
Mode
The mode is 639, which is the list price that has occurred the most number of times. In other words, most of the condominiums are at a list price of 639.
Range
The range is equal to 762, which is the difference between the maximum list price and the minimum list price. In other words, the highest list price and the lowest list price for the condominiums is equal to 762.
Standard deviation
The standard deviation of the list prices is 227, which reflects the average variations of the list price of the condominiums.
Outliers
There are no outliers since the range is not an extreme figure
Sale price
5-number summary
The minimum = 189
The maximum = 935.1
The median = 604.2
1st quartile = 454.1
3rd quartile = 800.2
From the above statistics, the maximum price the real estate firm have sold the condominiums is 602 and the maximum selling price 803.8. The difference from the lowest and the highest price of a condominium is 201.3. The medium selling price is 604.2, which reflects the average selling price. On the other hand, the first and the second quartiles are 454.1 and 800.2, respectively.
Mean = 606.59
Mean is 606.59, which reflects the price at which the real estate company sells the condominiums, on average.
Mode
There is no mode for the data, because there is not a single price that appears the most as far as the sale price is concerned.
Range = 346.1
The range is 346.1, which reflects the difference the maximum selling price and the minimum selling price for the condominiums. In other words, the diversity between the highest and the lowest price the real estate company has ever sold the condominiums at is equal to 346.1.
Standard deviation = 221.3
The standard deviation is 221.3, which is the average variability of the selling prices for the condominiums.
Outliers
There is no outlier since the range is not an extremely large figure.
Days of sale
5-number summary
The minimum = 22
The maximum = 298
The median = 137.5
1st quartile = 71.5
3rd quartile = 223.75
The mean
The mean for the list price is 146.65, meaning that the average number of days that the company takes to sell the condominiums is equal to 146.65
Mode
The mode is 249, which is the number of sale days that have occurred, the most.
Range
The range is equal to 276, which is the difference between the maximum list price and the minimum list price.
Standard deviation
The standard deviation of the list prices is 87.3, which reflects the average variations in terms of the days it takes the company to sell the condominiums.
Outliers
There are no outliers since the range is not an extreme figure.
NO GULF VIEW CONDOMINIUMS
List price
5-number summary
The minimum = 131
The maximum = 284
The median = 200.5
1st quartile = 177
3rd quartile = 237.75
The minimum value is 131 indicating that the lowest list price for the no gulf view condominiums is 131. The maximum list price is 284, which is the highest price that the real estate experts are willing to sell the condominiums. The median is 200.5, which is the average price for the condominiums. On the other hand, the first quartile and the third quartiles are 177 and 237.75 respectively.
The mean
The mean for the list price is 206.9, meaning that the average price on the list for the condominiums is 206.9.
Mode
There is no mode.
Range
The range is equal to 153, which is the difference between the maximum list price and the minimum list price. In other words, the highest list price and the lowest list price for the condominiums, is equal to 153.
Standard deviation
The standard deviation of the list prices is 45.6, which reflects the average variations of the list price of the condominiums.
Outliers
There are no outliers since the range is not an extreme figure
Sale price
5-number summary
The minimum = 126.4
The maximum = 274
The median = 193.15
1st quartile = 167.7
3rd quartile = 230.85
Mean =198.7
Mean is 198.7, which reflects the price at which the real estate company sells the condominiums, on average.
Mode
There is no mode for the data, because there is not a single price that appears the most as far as the sale price is concerned.
Range = 147.6
The range is 147.6, which reflects the difference the maximum selling price and the minimum selling price for the condominiums. In other words, the disparity between the highest and the lowest price the real estate company has ever sold the condominiums at is equal to 346.1.
Standard deviation = 44.4
The standard deviation is 44.4, which is the average variability of the selling prices for the condominiums.
Outliers
There is no outlier since the range is not an extremely large figure.
Days to sell
Days of sale
5-number summary
The minimum = 52
The maximum =395
The median = 222.5
1st quartile = 167.5
3rd quartile = 351.5
The mean
The mean for the list price is 244.2, meaning that the average number of days that the company takes to sell the condominiums is equal to 244.2.
Mode
The mode is 215, which is the number of sale days that have occurred, the most.
Range
The range is equal to 343, which is the difference between the maximum list price and the minimum list price.
Standard deviation
The standard deviation of the list prices is 102.8, which reflects the average variations in terms of the days it takes the company to sell the condominiums.
Outliers
There are no outliers since the range is not an extreme figure.
Task 3
From the above data, it is clear that gulf view condominiums are extremely expensive compared to no gulf view condominiums, as reflected by the average price. However, the variability of prices for the no gulf view condominiums is lower, compared to gulf view condominiums. Additionally, it takes a fewer days to ...