Arithmetic Mean and Gulf View Essay

Gulf Real Estate Properties Gulf Real Estate Properties, Inc. , is a real estate firm located in southwest Florida. The company, which advertises itself as “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 recent sales data for 40 Gulf View condominiums and 18 No Gulf View condominiums. Prices are in thousands of dollars. Those analyses are below: Descriptive Statistics for Gulf View Gulf View List Price| Gulf View Sales Price| Gulf View Days to Sell| Mean| 474. 0075| Mean| 454. 2225| Mean| 106| Median| 437| Median| 417. 5| Median| 96| Maximum| 975| Maximum| 975| Maximum| 282| Minimum | 169. 9| Minimum | 165| Minimum | 28| Standard Deviation | 197. 29003| Standard Deviation | 192. 177534| Standard Deviation | 58. 2168207| Based on the chart, the mean was calculated by adding up the sum of the list and divide 40, which the number of the total listed prices. The mean is 474,007. 5, which mean the average of the listed price. Secondly, the median was calculated by listing the number in numerical order from lowest to highest and located the number in the middle 437,000. The median represents the middle number of the listed price. After calculating the median I located the minimum and maximum based the lowest and highest data, which are 169,900 and 975,000.

These represent the range of the listed price. Lastly, I used the formula to get the standard deviation of 197,290. 03, which measures the variability. To calculate the mean I added up the sum sale price and divide 40, which the number of the total sale prices. The mean is 454,222. 5, which mean the average of the listed price. The median was calculated by listing the numbers in numerical order from lowest to highest and located the two numbers in the middle and divided those two numbers by two and got 417,500. The median represents the middle number of the sale price.

After calculating the median I located the minimum and maximum based the lowest and highest data, which are 165,000 and 975,000. These represent the range of the sale price. Lastly, I used the formula to get the standard deviation of 192,517. 75, which measures the variability. To calculate the mean I added up the sum of days to sell and divided by 40. The mean is 106,000, which mean the average of the listed price. The median was calculated by listing the numbers in numerical order from lowest to highest and located the number in the middle of 96,000.

The median represents the middle number of the days that it took to sell the condominiums. After calculating the median I located the minimum and maximum based the lowest and highest data, which are 28,000 and 282,000. These represent the range of the sale price. Lastly, I used the formula to get the standard deviation of 58,216. 82, which measures the variability. Descriptive Statistics for Non Gulf View Non Gulf View List Price| Non Gulf View Sale Price| Non Gulf View Days to Sell| Mean| 212. 805556| Mean| 203. 188889| Mean| 135| Median| 212. 5| Median| 203. 5| Median| 126|

Minimum| 148| Minimum| 135. 5| Maximum| 338| Maximum| 322| Maximum| 292. 5| Minimum | 48| Standard Deviation | 48. 9452812| Standard Deviation | 43. 8917236| Standard Deviation | 76. 2997186| I added up the sum sale price and divide 18, which the number of the total sale prices. The mean is 212,805. 56, which mean the average of the list price. The median was calculated by listing the numbers in numerical order from lowest to highest and located the two numbers in the middle and divided those two numbers by two and got 212,500. The median represents the middle number of the sale price.

After calculating the median I located the minimum and maximum based the lowest and highest data, which are 148,000 and 322,000. These represent the range of the sale price. Lastly, I used the formula to get the standard deviation 48,945. 28, which measures the variability. To calculate the mean I added up the sum of days to sell and divided by 18. The mean is 203,188. 89, which mean the average of the listed price. The median was calculated by listing the numbers in numerical order from lowest to highest and located the number in the middle of 203,500.

The median represents the middle number of the days that it took to sell the condominiums. After calculating the median I located the minimum and maximum based the lowest and highest data, which are 135,500 and 292,500. These represent the range of the sale price. Lastly, I used the formula to get the standard deviation of 43,891. 72, which measures the variability. Based on the chart, the mean was calculated by adding up the sum of the list and divide 18, which the number of the total listed prices. The mean is 135,000, which mean the average of the listed price.

Secondly, the median was calculated by listing the number in numerical order from lowest to highest and located the number in the middle 126,000. The median represents the middle number of the listed price. After calculating the median I located the minimum and maximum based the lowest and highest data, which are 48,000 and 338,000. These represent the range of the listed price. Lastly, I used the formula to get the standard deviation of 76,299. 72, which measures the variability. Statistics Results Gulf View Average list price| $ 474,000 | Gulf View Average sale price| $ 454,000. 0 | Difference| $ 20,000. 00 | The list prices are Gulf Real Estate strategy prices and the sale prices are the price that the market can accept. Based on the mean it shows the average listed price in the market is 474,000, which is higher than the average of the market sale price of 454,000. The data illustrates that the average market sales price is 20,000 less than the average listed price. Gulf View List Price| | Minimum | 169. 9| Maximum| 975| Gulf View Sale Price| | Minimum | 165| Maximum| 975| Besides the minimum and maximum illustrates that the listed price is similar o the sales price, which means our listed price in the market are in a similar range as the sale price. Gulf View Average Sale Price| Non Gulf View Average Sale Price| $454,000. 00 | $203,000. 00 | Gulf View average days to sell| 106 days| Non Gulf View average days to sell| 135 days| Difference| 29 days| Based on the data the Gulf View condominium are selling a higher average sales price than the Non Gulf View condominium and also the average days of sale list price is 106 days, which is 29 days shorter than the Non Gulf View.

The data for the Non Gulf View illustrates that the minimum and maximum listed price is substantial higher than the price sales price (market price). Gulf View Sale Price| | Confidence Level (95%)| 61. 57016455| Mean| 454. 2225| I used the T score of 95% confidence level to get 61,570,16 For the 95% confidence interval estimate for the Gulf View sale price is the sample mean of 454,222. 5 add or minus 61. 57016455, which is 393,650 to 515,790. This means 95% chances that mean sales prices will fall in the range 393,650 to 515,790. Gulf View Days to sell| | Confidence Level (95%)| 16. 994936| Mean| 106| I used the T score of 95% confidence level to get 16. 70. The 95% confidence interval estimates for the Gulf View number of days to sell are 106 adding or minus 16. 70, the range would be 89. 30 to 122. 70. This means there are 95% of chances that days for sell for population will be 89. 30 days to 122. 70 days. Non Gulf View Sale Price| | Confidence Level (95%)| 21. 8268406| Mean| 203. 188889| I used the T score of 95% confidence level to get 21,826. 84. For the 95% confidence interval estimate for the No Gulf View sale price is the sample mean of 203,188. 9 add or minus 21,826. 84, which is 181,362. 05 and 255,015. 73. This means 95% chances that sales prices will fall in the range 181,362. 05 to 255,015. 73. Gulf View Days to Sell| | Confidence Level (95%)| 37. 94295741| Mean| 135| I used the T score of 95% confidence level to get 37. 94295741. For the 95% confidence interval estimate for the Gulf View number of days to sell is 135 add or minus 37. 94, the range would be 97. 06 to 172. 94. This means there are 95% of chances that days for sell for population will be 97. 06 days to 172. 94 days. 5% Confidence of sample sizes Z score for 95% confidential level is 1. 96, the planning value of standard deviation of selling price of Gulf view is 192. 5177534 and the margin error is 40. Then we can use the formula to get the sample size n for Gulf view 89. Standard deviation of selling price of no Gulf view is 61. 57016455 and the margin error is 15. Then I can use the formula again to get the sample size for Non-Gulf view and get 33. The data means that I am 95% confident that the mean of the Gulf and Non-Gulf View is the calculations listed above.

The larger mean sample size illustrates that the information provided is seen to be more accurate than smaller mean sample size. Gulf View New Listings Gulf View List Price| Gulf View Sale Price| Gulf View Days to Sell| 520. 0| 495. 0| 161| 529. 0| 519. 0| 85| 550. 0| 505. 0| 92| 552. 5| 534. 5| 95| 595. 0| 555. 0| 45| 629. 0| 600. 0| 97| 638. 0| 618. 0| 100| 649. 0| 649. 0| 29| 675. 0| 669. 0| 142| 885. 0| 800. 0| 282| 895. 0| 875. 0| 129| 975. 0| 945. 0| 73| 975. 0| 975. 0| 100| (CONTINUED) I sort the list prices from the lowest to highest and find out the new list price 589,000 is close to 595. 00. So I assume the selling price will also be close to 555, and the days for sales will be close to 45 days. Non Gulf View New Listings Non Gulf List Price| Non Gulf Sale Price| Non Gulf Days to Sell| 239. 0| 230. 0| 150| 247. 0| 227. 0| 52| 279. 0| 267. 5| 169| 279. 0| 259. 0| 110| 322. 0| 292. 5| 63| For No Gulf view, I did the same thing. The list price 285 is close to 279 so we can assume the selling price will around 267. 5 and days for sale is 169. Also, there is another method we can use to estimate the exactly number. I used the total sales price divided by total list price, the ratio is 95. 3%. This means our sales price will be 95. 83% of our list prices for Gulf view. So, 95. 83%*589,000=564,438. 7, this is the estimate sales price. Then the number of days required to sell this unit is 45, as the estimate sells price close to 555,000 in the table. Then total sales price divided by total list price, the ratio is 95. 48%. This means our sales price will be 95. 48% of our list prices for non-Gulf view. So 95. 48%* 285,000=272, 118, this is the estimate sales price. Then the number of days required to sell this unit is 169, as the estimate sells price close to 267,500 in the table.