BUS511

Submitted By Submitted To
Jafrul Islam Sojol Abdus Sattar, Ph.D.
1935277060 Professor.
 NORTH SOUTH UNIVERSITY
MBA/EMBA PROGRAM
SPRING- 2020
Course Title: Business Statistics
Course Code: BUS-511

Assignment using IBM SPSS

First enter the Real Estate data into SPSS from the page # 746 of your Text Book and then
add the number you are supplied with the variable selling price only. Assume the 105
homes is population.
Select a sample of size 77 and answer the following exercises using your sample data.

Exercise 1: Refer to the North Valley Real Estate data, which report information on homes
sold in the area last year. Consider the following variables: selling price, number of bed
rooms, township and garage.
a) Which of the variables are qualitative and which are quantitative?
Ans: Qualitative: Township, Garage
Quantitative: Selling price, Number of bedrooms

b) Determine the level of measurement for each of the variables.

Ans: 1. Selling Price : Ratio Scale
2. Bedrooms : Ratio Scale
3. Township: Ordinal Scale
4. Garage: Nominal Level

c) Select an appropriate class interval and organize the “Selling prices” into a frequency
distribution table and interpret. Determine the mean, median, mode, variance and
standard deviation from your frequency distribution table.

Ans: n=77
2^k=2^6=64
2^k=2^7=128, so I have 7 classes.

Class Interval i= range/k , i=750480/7= 107211.43= 107200

Statistics
 Price of the home
N Valid 77
Missing 0
Mean 371597.26
Range 750480
Minimum 169077
Maximum 919557

Frequencies

Statistics
sojol
N Valid 77
Missing 0
Mean 2.43
Median 2.00
Mode 1
Std. Deviation 1.634
Variance 2.669
Range 7
Minimum 1
Maximum 8

Sojol
2
x- x
Cumulative
( x x )
Frequency
Frequency x fx x
2.3510
10
Valid 168000-275200 27 27 221600 5983200 374742.86 -153142.86
275200-382400 22 49 328800 7233600 -45942.86 2110746385
382400-489600 14 63 436000 6104000 61257.14 3752437201
2.8410
10
489600-596800 6 69 543200 3259200 168457.14
7.6010
10
596800-704000 2 71 650400 1300800 275657.14

1.4710
11
704000-811200 3 74 757600 2272800 382857.14

2.4010
11
811200-918400 2 76 864800 1729600 490057.14

3.5710
11
918400-1025600 1 77 972000 972000 597257.14

Total 77 4774400 28855200

 f x  x 
2

6.3510
11

4.6510
10

5.2610
10

1.7110
11

1.5210
11

4.4210
11

4.810
11

3.5710
11

2.3410
12

Interpretation:
1. The lowest selling price was $168000
2. The highest selling price was $1025600
3. The highest concentration of the selling price (27) was the range of $168000-$275200
4. Majority of the home (63 out of 77) was the range of $168000 up to $489600.
5. Only 27 homes were below $275200
6. Only 1 homes were above $918400

Mean, x 
 fx  28855200  374742.86 f =77, f /2=77/2=38.5
f 77
n 
  cf 
Median= l   2 h
 f 
 
 
38.5  49
= 168000+ ( ) * 107200
107200
= 16789.5

 f x  x  = 2.3410
2 12

 3.0810
2 10
Variance s n 1 76
=

 f x  x 
2

2.3410
12

Standard Deviation s  = = 175469.30

n 1 76
 d) Compute the Mean, Median, Mode, Range, Standard Deviation, Variance, Quartiles,
Deciles, 85th Percentile of “Selling price” from the raw data of your sample and
interpret.

Ans:

Statistics
Price of the home
N Valid 77
Missing 0
Mean 371597.26
Median 326772.00
Mode 169077a
Std. Deviation 173682.557
Variance 30165630545.5
11
Skewness 1.426
Std. Error of Skewness .274
Range 750480
Minimum 169077
Maximum 919557
Percentiles 10 195130.20
20 227962.20
25 241094.50
30 260213.00
40 310750.00
50 326772.00
60 369329.40
70 393372.80
75 431007.00
80 475010.60
85 540432.20
90 673148.60
a. Multiple modes exist. The smallest value is
shown

Interpretation
Mean: $371597.26 is the typical price of the homes
Median: 50% of the prices are below $326772.00 and 50% above.
Mode: $169077a is appear most option in the data.
Std. Deviation: Standart deviation is average.
Skewness: There is almost a moderate positive skewness in the distribution table.
Percentiles: D1= 10% of the selling prices are below the amount $195130.20 and 90% above it.
D2= 20% of the selling prices are below the amount $227962.20and 80% above it.
Q1= $241094.50, 25% of the selling prices are below the amount and 75% above it.
D3= $260213.00, 30% of the selling prices are below the amount and 70% above it.
D4= $310750.00, 40% of the selling prices are below the amount and 60% above it.
D5= $326772.00, 50% of the selling prices are below the amount and 50% above it.
D6= $369329.40, 60% of the selling prices are below the amount and 40% above it.
D7= $393372.80, 70% of the selling prices are below the amount and 30% above it.
Q3= 431007.00, 75% of the selling prices are below the amount and 25% above it.
D8= 475010.60, 80% of the selling prices are below the amount and 20% above it.
D9= 673148.60, 90% of the selling prices are below the amount and 10% above it.

e) About 95% of the selling prices are between what two values? What rule do you use
to answer to this question?

Ans: Between Z = – 2.4580 and Z = + 2.4580 are approximately 95% of the selling prices.
I used the Standard Normal Distribution rules.

f) Compare the mean you found in (c) and in (d). Which mean is more appropriate and
why?

Answer: Question no c, here we get the mean of group data 374742.86 and Question no d,
here we get the mean of ungroup data 371597.26. Mean of the ungroup data is more
appropriate. The mean of ungrouped data is more accurate than that of mean of grouped
one because, it actually consists of raw data

g) Determine the coefficient of skewness for the variable “selling price”. Is the distribution
positively or negatively skewed?

Ans: A simple test for positive or negative skew in data set is to determine if the Mean is
greater than the Median (Positive/Right Skew) or if the Mean is less than the Median
(Negative/Left Skew).
So here we can say there is almost a moderate positive skewness in the distribution table.
 h) Develop a Bar Diagram and also a Pie chart for the variable “Township”. Interpret both the
charts.
Answer:

Interpretation
Highest number of home that is 25 have been sold in Dhanmondi. Majority of the home that is 43
have been sold in Dhanmondi and Mirpur. Only 10 have been sold in Baridhara.
Interpretation
Highest % of home that is 32.47% have been sold in Dhanmondi. Majority of the home that is
55.85% have been sold in Dhanmondi and Mirpur. Only 12.99% have been sold in Baridhara..

Exercise-3:
a) Develop a 99 percent confidence interval for the mean selling price of the homes.

Answer:

T-Test

One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
Price of the home 77 371597.26 173682.557 19792.964
 One-Sample Test
Test Value = 0
99% Confidence Interval of the
Difference 
t df Sig. (2-tailed) Mean Difference Lower Upper
Price of the home 18.774 76 .000 371597.260 319302.70 423891.82

Interpretation: 99 percent confidence interval for the mean selling price of the homes 319302.70
≤  ≥ 423891.82. The mean selling price of the homes ranges between $319302.70 to $423891.82
and we are 99% confidence about it.

b) Develop a 95 percent confidence interval for the mean size of the home from the center of the city.
Answer:

T-Test

One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
Size of the homes 77 3562.2078 1520.56138 173.28405

One-Sample Test
Test Value = 0
95% Confidence Interval of the
Difference
t df Sig. (2-tailed) Mean Difference Lower Upper
Size of the homes 20.557 76 .000 3562.20779 3217.0827 3907.3329

Interpretation: 95 percent confidence interval for the mean size of the home from the center of
the city 3217.0827≤  ≥ 3907.3329. The mean size of the home ranges between $3217.0827 to
$3907.3329 and we are 95% confidence about it.
Exercise-4:
a) A recent article in The Daily Newspaper indicated that the mean selling price of the homes in the
capital city is $357000. Can we conclude that the mean selling price in the capital city is not
different from$357000? Use the 0.05 significance level.

Ans:

T-Test

One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
Price of the home 77 371597.26 173682.557 19792.964

One-Sample Test
Test Value = 357000
95% Confidence Interval of the
Difference
t df Sig. (2-tailed) Mean Difference Lower Upper
Price of the home .737 76 .463 14597.260 -24823.85 54018.36

Interpretation:
H0= , is not different from 357000
H1= , is different from 357000
α = 0.05, p= .463, here p value is more than α value so Null (H0) is not rejected. That is , is not
different from 357000

b) The same article reported that the mean size in the capital city was more than 3400 square feet. Can we
conclude that the mean size of homes sold in the city area is more than 3400 square feet? Use the 0.05
significance level.

T-Test

One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
Size of the homes 77 3562.2078 1520.56138 173.28405
 One-Sample Test
Test Value = 3400
95% Confidence Interval of the
Difference
t df Sig. (2-tailed) Mean Difference Lower Upper
Size of the homes .936 76 .352 162.20779 -182.9173 507.3329

Interpretation:
One-tail Test= .352/2=0.176
H0= , is not different from 3400
H1= , is different from 3400
α = 0.05, p= .176, here p value is more than α value so Null (H0) is not rejected. That is , is not
different from 3400

Exercise-5:

a) At the .05 significance level, can we conclude that there is a difference in the mean
selling price of homes with a pool and homes without a pool? (two sample t test)

Answer:
T-Test

Group Statistics
Pool N Mean Std. Deviation Std. Error Mean
Price of the home no 29 352562.17 132307.841 24568.949
yes 48 383097.63 194913.052 28133.276

Interpretation: Here we can see price of the home with pool is different from price of the home
with no pool. Total number of home with pool is 48 and without pool is 29. Mean selling price
with pool $383097.63 and without pool $352562.17. Here p=.458 is more than α = 0.05 so Null
(H0) is not rejected (1=2)

b) At the .05 significance level, can we conclude that there is a difference in the
mean selling price of homes with an attached garage and homes without an
attached garage?

T-Test

Group Statistics
Garage N Mean Std. Deviation Std. Error Mean
Price of the home no 20 259058.80 67146.123 15014.330
yes 57 411084.44 182480.423 24170.122

Interpretation: Here we can see price of the home with garage is different from price of the home
with no garage. Total number of home with garage is 57 and without garage is 20. Mean selling
price with pool $411084.44 and without pool $259058.80. Here p=.001 is less than α = 0.05 so
Null (H0) is rejected (1≠ 2)

Exercise-6:
At the .05 significance level, is there a difference in the mean selling price of the homes
among the five township?
Ans: We need to check mean selling price of the homes among the five township:
1. Basundhara
2. Gulshan
3. Mirpur
 4. Dhanmondi
5. Baridhara
H0: 1=2=3=4=5
H1: 1≠ 2≠ 3≠ 4≠ 5

Oneway

ANOVA
Price of the home
Sum of Squares df Mean Square F Sig.
Between Groups 114605563356.554 4 28651390839.139 .947 .442
Within Groups 2177982358102.251 72 30249754973.642
Total 2292587921458.805 76
Interpretation: Here p=.442 is more than α = 0.05 so Null (H0) is not rejected. That means H0:
1=2=3=4=5.All are same. There is no different between mean selling prices of five
township.

Exercise-7:
a) Let selling price be the dependent variable and size of the home the independent variable.
Determine the regression equation and interpret. Estimate the selling price for home with an area
of 2,200 square feet. Determine r, R2 and Sy.x . Interpret.

Answer:
Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate (Sy.x )

1 .954a .910 .909 52418.162

a. Predictors: (Constant), Size of the homes

Interpretation:
Correlation r= .954, There is week positive relationship between x and y. x is size of the home
and y is selling price.
R2 = .910, 9.10% of the total variation in the dependent variable y is explain or accounted for by
the variation in the independent variable size of the homes.
Sy.x = 52418.162, $52418.162 is the typical error we make when we use our regression equation
to estimate the dependent variable y. y is selling price.
Regression Equation, y’= a+bx
 Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) -16570.142 15300.383 -1.083 .282
Size of the homes 108.968 3.954 .954 27.557 .000
a. Dependent Variable: Price of the home

Regression Equation, y’= a+bx

y’= -16570.142+ 108.968* 2,200
= 223159.458
Interpretation: -16570.142 is the point to which regression line crosses y-axis.
108.968, if x is increase by 1 sqr feet the y selling price will increase by $108968

b) Let selling price be the dependent variable and number of bedrooms the independent variable.
Determine the regression equation and interpret. Determine R2 and Sy.x . Interpret. Estimate the
selling price for home with 5 bedroom.
Ans:
Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate
1 .852a .725 .721 91670.548
a. Predictors: (Constant), Number of Bedrooms

Interpretation:
Correlation r= .852, There is weak positive relationship between x and y. x is size of the home
and y is selling price.
R2 = .725, 7.25% of the total variation in the dependent variable y is explain or accounted for by
the variation in the independent variable number of bedrooms.
Sy.x = 91670.548, $91670.548 is the typical error we make when we use our regression equation
to estimate the dependent variable y. y is selling price.
Regression Equation, y’= a+bx
 Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 8284.948 27864.123 .297 .767
Number of Bedrooms 93250.160 6630.118 .852 14.065 .000
a. Dependent Variable: Price of the home

Regression Equation, y’= a+bx

y’= 8284.948+ 93250.160* 5
= 474535.748
Interpretation: $8284.948is the point to which regression line crosses y-axis.
93250.160, if x is increase by 1 the y selling price will increase by $93250.160 thousand

Exercise-8:
Use the selling price as the dependent variable and determine the regression equation with
number of bedrooms, size of the house, whether there is a pool, whether there is a attached
garage, distance from the center of the city and number of bathrooms as independent variables.

a) Write out the regression equation. Discuss each of the variables .How much does a
garage or a swimming pool adds to the selling price of a home?

Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) -36082.032 18618.228 -1.938 .057
Number of Bedrooms -31234.325 25004.997 -.285 -1.249 .216
Size of the homes 111.351 8.737 .975 12.745 .000
Pool 23460.124 12038.044 .066 1.949 .055
Garage -25746.742 15964.038 -.065 -1.613 .111
Number of Baths 49234.053 34305.837 .301 1.435 .156
a. Dependent Variable: Price of the home
Ans: Regression Equation y’= a  b1x1  b2x2  b3x3  b4x4  b5x5
= -36082.032+ (-31234.325)x1+ (111.351)x2 + (23460.124)x3 + (-25746.742)x4
+ (49234.053)x5

Number of Bedrooms=b1= -31234.325

If number of the bedrooms is increasing by 1 the selling price of the home will be increase by
this amount $31234.325 thousand, keeping other independent variable constant.

Size of the homes=b2=111.351, if size of the home in sqr feet increased by 1 sqr feet, the
selling will be increased this amount $111351, keeping other independent variable constant.

Pool=b3= 23460.124, if there is a pool in the home selling price will be $23460.124 thousand
higher than those who not have a pool, keeping other independent variable constant.

Garage=b4= -25746.742, if there is a garage in the home selling price will be $25746.742
thousand higher than those who not have a garage, keeping other independent variable constant.

Number of Baths=b5= 49234.053, if number of baths is increasing by 1 the selling price of the
home will be increase by this amount $49234.053 thousand, keeping other independent variable
constant.

b) Determine the value of R-square. Interpret.

Answer :
Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate
1 .959a .919 .914 50985.233
a. Predictors: (Constant), Number of Baths, Pool, Garage, Size of the
homes, Number of Bedrooms

R2 = .919, 9.19% of the total variation in the dependent variable y is explain or accounted for by
the variation in the independent variables like Number of Bedrooms, Size of the homes, Pool,
Garage and Number of Baths.

c) Determine the multiple S.E of the estimate and interpret.

Ans: Sy.12345 =50985.233, $50985.233 is the typical error we make when we use our regression
equation to estimate the dependent variable y. y is selling price.
d) Conduct a global test on the set of independent variables. Interpret.
Ans: Global Test: H0 : β1=β2=β3=β4=β5=0
H1 : Not all the β’s are zero
α = 0.05
Decision from Anova table
ANOVAa
Model Sum of Squares Df Mean Square F Sig.
1 Regression 2108023848895 421604769779.
5 162.187 .000b
.837 167
Residual 184564072562. 2599493979.76
71
968 0
Total 2292587921458
76
.805
a. Dependent Variable: Price of the home
b. Predictors: (Constant), Number of Baths, Pool, Garage, Size of the homes, Number of
Bedrooms
Since p value (0) is less than α = 0.05 value, Null hypothesis (H0) is rejected. That is equation is
valid it can be used for the estimation.

Date of submission: on or before – 04/06/2020.