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Practice Problems
A client, Leslie White, is planning on selling her townhouse in the Miami-Dade County area
HOUSE SALE IN MIAMI
You are a self-employed statistical consultant. It's June, 2004. A client, Leslie White, is planning on selling her townhouse in the Miami-Dade County area in July, 2004, and has hired you to help determine a suitable selling price.
In Florida (unlike New York, say) it is straightforward to obtain information on the sales of homes by an online search. You have done so. Her neighborhood includes hundreds of townhouses, and you have obtained the following information (in the files noted above) on all townhouses in this neighborhood that were sold from the period March, 2000 through now:
YrSold Price MoSold Beds
Year Sold Selling Price Month Sold # of Bedrooms
SqFt YrBuilt Baths
Square Feet Year Built # of Baths
Her townhouse is 1345 square feet, was built in 1980, and has 2 baths and 2 bedrooms. She is hoping to sell her townhouse either at the 50th or at the 75th percentile for townhouses like hers that might be sold in July. (She will set the asking price about 5% higher that what she expects to sell it for, but the asking-price estimates do not need to be considered in this analysis).
Based on your professional analysis, and assuming a July 2004 sale date, she would like you to estimate what she might receive as the sale price for her townhouse. Also, she would like to create a formal (approximate or exact) 95% C.I. for both these 50th and 75th percentiles.
She would also like to know the general nature of the market. That is, has the appreciation of houses (on a percent-per-year basis) increased? Or has it been pretty steady over this time period? Or, do houses simply seem to increase by a fixed dollar amount each year? Please let her know, and also summarize this appreciation pattern for her.
Please present your results as follows for the client:
1. A cover letter
2. A two-page summary for your client. She would like to see graphs that show her, as clearly as possible, how you reached your sale-price estimate decision so she is comfortable with it.
3. An appendix that includes clear technical details about your methodology. This is needed because you are a professional statistician, and also to defend
your position in a self-contained document if that later becomes necessary.
4. An appendix that contains your code, with an appropriate amount of comments. Also include a listing of the raw data, so that others could perform an analysis with the same information that was available to you.
Write report include these 9 section and the report should be as many pages for analysis tables and graphs and technique details
1. Executive Summary
Approximately a half-page summary for management (a busy executive who knows little about statistics, and is interested only in how the results are of use to the company). An introduction to remind the executive of the problem, and then quantitative results, conclusions and recommendations. Totally void of jargon.
2. Background, Motivation, Statement of Problem and Objectives
3. Design and Data Collection, or Explanation.
For experimental data, the design, protocol, how response is defined, with enough information so that someone else could repeat the process, aside from very technical features. What factors & why (if known...), what levels & why, etc. For observational data, an explanation of how data were collected, purpose of original data collection, and so on. If appropriate, your evaluation of the quality of the data based on the quality of the data-collection process.
4. Statistical Analysis
What results occurred. Informal analysis: appropriate plots and/or tables that indicate key features of the raw data. Formal analysis: build a suitable model, check it (e.g., residual analyses), and summarize your findings. This may well be an iterative process: examining different error distributions, transformations, predictors, and so on. Use proper statistical analyses and good graphics to summarize your findings. Remember sufficient statistics.
5. (If applicable) Non-Statistical Analysis: Physical Interpretation of Findings
Why these results might have occurred. A link to old theories, or a generation of a new theory.
6. (If applicable) Critical Evaluation, Future Plans, Recommended Confirmation Runs
7. Appendices, as needed
The following will also be considered
8. Your Overall Approach
The report should be well-written text (that is, writing, excluding graphs, tables, and so on), and as many pages as needed of analyses, tables, graphs, and
technical details. The report should be written in a formal style, e.g. do not use the first person.
9- at the end of report give me all R code that is used
Hint
StatisticsThere actually exists a real estate sale (s) process. Introduction, listing preparation, pricing, listing agreement, sales listing, viewings, receiving offers, sale negotiations, closing, and sources represents the same. ...
Know the process
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