Description
Main Post: You are in the real estate business focused on the housing market. You have been hired by the government to see if prices are in control for homes with similar characteristics, such as square footage, number of bedrooms, or number of bathrooms. For example, at least 3 bedrooms and 1.5 baths will be considered.
Begin by going to Zillow to find 10 cities in your state with at least four houses for sale in or near each city. For this exercise, each city will be a sample. The prices for four houses in or near each city will be the four items for each sample.
Using the x bar and r chart raw data input tab in the Excel Workbook for this unit, list the upper and lower limits for the ranges and means using a standard deviation of 3 sigmas.
State whether the range of prices is in control for the state.
State whether the mean of prices is in control for the state.
Attach your completed spreadsheet to your post Peer Reply 1:Read a classmate’s thread. Assume that the sample averages of the housing prices are normally distributed.
State the standard deviation of the sample means.
State the z-score for the highest average price.
State the z-score for the lowest average price.
Based on the z-scores from #2 and #3, state which is more likely: obtaining an average above the highest sample or obtaining an average below the lowest sample.
How did you arrive at your conclusion for #4? Peer Reply 2:Review another classmate’s thread.
What is the probability of obtaining an average above the highest average?
What is the probability of obtaining an average below the lowest average?
Based on the calculated probabilities from above, which is more likely: obtaining an average above the highest sample average or obtaining an average below the lowest sample average?
