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1) Analytics Project Phase 2: due on Dec 11, 2020, 11:55pm 2) Final Exam: 12/17/2020, Thursday, 5:00pm-6:50pm Question 7 in Analytics Project Gulf Real Estate Properties just signed contracts for two new listings: a Gulf View condominium with a list price of $589,000 and a No Gulf View condominium with a list price of $285,000. What is your estimate of the final selling price and number of days required to sell each of these units? The mean number of days to sell Gulf View condominiums is 106 days. Using this, it is estimated to sell a Gulf View condominium with a list price of $589,000 is about 106 days. The mean number of days to sell No Gulf View condominiums is 135 days. Using this, it is estimated to sell a No Gulf View condominium with a list price of $285,000 is 135 days. There are many ways to estimate of the final selling price. Here we provide two different methods. 1) Method 1 Mean list price of Gulf View condominiums: $474,000 Mean sale price of Gulf View condominiums: $454,200 On average sale price of Gulf View condominiums is $474,000 - $454,200 = $19,800 below list price. Thus the estimated selling price of a Gulf View condominium with a list price of $589,000 is $589,000- $19,800 =$569,200. Mean list price of No Gulf View condominiums: $212,800 Mean sale price of No Gulf View condominiums: $203,200 On average sale price of No Gulf View condominiums is $212,800 - $203,200 = $9,600 below list price. Thus the estimated selling price of a No Gulf View condominium with a list price of $285,000 is $285,000 - $9,600 =$275, 400. 2) Method 2 Mean list price of Gulf View condominiums: $474,000 Mean sale price of Gulf View condominiums: $454,200 On average sale price of Gulf View condominiums is $"#",%%% & $"'",(%% $"#",%%% = $19,800 $"#",%%% = 4.2% below list price. Thus the estimated selling price of a Gulf View condominium with a list price of $589,000 is $589,000 *(1-4.2%)= $564,262. Mean list price of No Gulf View condominiums: $212,800 Mean sale price of No Gulf View condominiums: $203,200 On average sale price of No Gulf View condominiums is $212,800 − $203,200 $212,800 = $9,600 $()(, *%% = 4.5% below list price. Thus the estimated selling price of a No Gulf View condominium with a list price of $285,000 is $285,000 *(1-4.5%)=$272, 175. Chapter 10 ISDS361A Analytics Project May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ISDS361A Analytics Project What is the population mean sales price for some type of real estate properties? How to estimate the final selling price of a real estate property and number of days required to sell this property? We will answer these business questions by completing the following case study. Case Problem: 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. The data are available on the course website (Analytics Project -> GulfProp.csv). Managerial Report 1. Use appropriate descriptive statistics to summarize each of the three variables for the 40 Gulf View condominiums. 2. Use appropriate descriptive statistics to summarize each of the three variables for the 18 No Gulf View condominiums. 3. Compare your summary results. Discuss any specific statistical results that would help a real estate agent understand the condominium market. 4. Develop a 95% confidence interval estimate of the population mean sales price and population mean number of days to sell for Gulf View condominiums. Interpret your results. 5. Develop a 95% confidence interval estimate of the population mean sales price and population mean number of days to sell for No Gulf View condominiums. Interpret your results. 6. Assume the branch manager requested estimates of the mean selling price of Gulf View condominiums with a margin of error of $40,000 and the mean selling price of No Gulf View condominiums with a margin of error of $15,000. Using 95% confidence, how large should the sample sizes be? ISDS361A Analytics Project May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7. Gulf Real Estate Properties just signed contracts for two new listings: a Gulf View condominium with a list price of $589,000 and a No Gulf View condominium with a list price of $285,000. What is your estimate of the final selling price and number of days required to sell each of these units? The project will be carried out in two distinct phases and will culminate in a final report not exceeding 3 pages, including all tables and figures (Times New Roman 12-pt font, single-spaced with 1-inch margins on all sides). The phases of the project are: • Phase 1: In this phase, you will write up a “project proposal” (1 page maximum, same format as the final report) that will include a brief introduction, the business questions to be answered, description of the data, basic exploratory analyses using descriptive statistics (only need to complete parts 1, 2, 3 in managerial report in Phase 1) and the methods you will be using for the remaining parts of managerial report. For example, for part 4, it is enough to mention that you will use t- distribution to construct confidence interval estimate. You do not need to compute the confidence interval estimate. • Phase 2: In this phase, the student will use the work from Phase 1 in conjunction with the feedback received from the instructor to complete all the analysis required to address the business problem. The results and final conclusions should then be written up and the final report submitted. Your report should have the following sections (Phase 1 – proposal; Phase 2 – final report), arranged sequentially: 1. Introduction and problem background (Phase 1, Phase 2) 2. Data description and the business questions to be answered (Phase 1, Phase 2) 3. Initial data exploration – descriptive statistics/graphs (Phase 1, Phase 2) 4. Analyses (Phase 2) 5. Interpretation of results and final conclusions and recommendations for decision- making (Phase 2) Submission: Your final report must be uploaded on Titanium as a single Microsoft Word or a pdf file. No email submission will be accepted. If a student disregards this and uses email to submit, a zero is assigned for the report. Submitting a report is no guarantee for receiving any credit. Deadlines Analytics Project Phase 1: November 20, 2020, Friday, 11:55pm Analytics Project Phase 2: December 11, 2020, Friday, 11:55pm