Gulf Real Estate Properties

Case Study

Subject: Quantitative Methods (QM)- I

Division - B

GROUP 1
MEMBERS

•Roma Paryani 80012100161

•Nidhi Joshi 80012100775
•Chetna Singh 80012100100
•Aditya Verma 80012100718
•Khushi Kapoor 80012100047
•M.Rajeswari 80012100702
•Kanakapriya 80012100214

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 AUGUST 2021
GULF REAL ESTATE PROPERTIES CASE
STUDY

1. Case Summary:

The Gulf Real Estate Properties Inc., is located in Southwest Florida. The
company monitors condominium sales by collecting data on location, list price,
sale price and days to sell. Each condominium is classified as Gulf View and
No Gulf View basing on the location.

Tools and Techniques used to solve the Case:

Various tools and techniques were used to solve the case using formulas and
excel:
 Descriptive Statistics
 Interval Estimation
 Confidence Level for calculation of Interval Estimation
 Z value for calculating Sample size

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 2. Managerial Recommendations:

Q1. Descriptive Statistics: Summary of the three variables for 40 Gulf View
condominiums

List Price Sales Price

       
Mean 474.0075 Mean 454.2225
Standard Error 31.19429258 Standard Error 30.43972954
Median 437 Median 417.5
Mode 975 Mode 305
Standard Deviation 197.2900291 Standard Deviation 192.5177534
Sample Variance 38923.35558 Sample Variance 37063.08538
Kurtosis 1.011328907 Kurtosis 1.183621479
Skewness 1.095814639 Skewness 1.159387914
Range 805.1 Range 810
Minimum 169.9 Minimum 165
Maximum 975 Maximum 975
Sum 18960.3 Sum 18168.9
Count 40 Count 40
Largest(1) 975 Largest(1) 975
Smallest(1) 169.9 Smallest(1) 165

Confidence Confidence
Level(95.0%) 63.09641236 Level(95.0%) 61.57016455

Days to Sell
   
Mean 106
8.25607779
Standard Error 2
Median 96
Mode 85
52.2160207
Standard Deviation 3
2726.51282
Sample Variance 1
Kurtosis 2.02202587
1.07764212
Skewness 3
Range 254
Minimum 28
Maximum 282
Sum 4240
Count 40
Largest(1) 282
Smallest(1) 28
Confidence 16.6994935 3
Level(95.0%) 9
INFERENCE: On an average it takes 106 days to sell a real estate property with
an average sale price of 454 when listed price is 474

Q2 . Descriptive Statistics: Summary of the three variables for 18 No

Gulf View condominiums

List Price Sales Price

       
Mean 212.8055556 Mean 203.1888889
Standard Error 11.53651342 Standard Error 10.34537846
Median 212.5 Median 203.5
Mode 279 Mode 179
Standard Deviation 48.94528124 Standard Deviation 43.89172358
Sample Variance 2395.640556 Sample Variance 1926.483399
Kurtosis -0.08523964 -
Skewness 0.543955061 Kurtosis 0.464068271
Range 174 Skewness 0.30418061
Minimum 148 Range 157
Maximum 322 Minimum 135.5
Sum 3830.5 Maximum 292.5
Count 18 Sum 3657.4
Largest(1) 322 Count 18
Smallest(1) 148 Largest(1) 292.5
Confidence Smallest(1) 135.5
Level(95.0%) 24.33991574 Confidence
Level(95.0%) 21.82684063
Days to Sell
   
Mean 135
17.9840161
Standard Error 4
Median 126
Mode #N/A
Standard Deviation 76.2997186
5821.64705
Sample Variance 9
2.21530122
Kurtosis 4
1.36054695
Skewness 7
Range 290
Minimum 48
Maximum 338
Sum 2430
Count 18
Largest(1) 338
Smallest(1) 48
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 Confidence 37.9429574
Level(95.0%) 1

INFERENCE: On an average it takes 135 days to sell a real estate property

with an average sale price of 203.18 when the listed price of property on
average is 212.

Q3. COMPARISON OF SUMMARY RESULTS

LIST PRICE
1. The Average Listing Price (mean) of the Gulf View Condominiums is higher
than that of the No Gulf View Condos.
($474007.50> $212,805.56)
2. The median listing price of the Gulf View Condos is also higher for the Gulf
View Condos in comparison to the No Gulf View Condos.
($437,000>$212,500)
3. Since the Standard deviation and range of the Gulf view Condos i.e.
$197,290 and $805,100 respectively is greater than the standard deviation and
range of No Gulf view Condos i.e. $48945.28 and $174,000 respectively, it
indicates the data of Gulf View Condos to be more variable.

SALES PRICE
1. The Average Sales Price (mean) of the Gulf View Condominiums is higher
than that of the No Gulf View Condos.
($454,222.50> $203,500)
2. The median Sales price of the Gulf View Condos is also higher for the Gulf
View Condos in comparison to the No Gulf View Condos.
($417,500>$203,500)
3. Since the Standard deviation and range of the Gulf view Condos i.e.,
$192,517.75 and $810,000 respectively is greater than the standard deviation
and range of No Gulf view Condos i.e., $43,891.72 and $157,000 respectively,
it indicates the data of Gulf View Condos to be more variable.

CONCLUSION:
The Gulf View Condos are higher in demand as they have higher prices than the
No Gulf View Condos, also the days to sell Gulf View Condos are shorter
which is also an indicator of the high demand.

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Q4. 95% confidence interval estimate- Gulf View Condominiums

95% Confidence Interval for Gulf View Condominiums

Confidence Index (for sales
price)  
Margin of Error 59.6608
Mean 454.2225
Upper Limit 513.8833
Lower Limit 394.562

INTERVAL -(394.56,513.8)
INFERENCE: With 95% confidence we can say that the population mean of
sales price lies within this interval.

Confidence Index (for days to sell)

Margin of Error 16.182

Mean 106

Upper Limit 122.18162

Lower Limit 89.818385

INTERVAL -(89.818, 122.181)

INFERENCE: With 95% confidence we can say that the population mean of
days to sell lies within this interval.

Q5. 95% confidence interval estimate- No Gulf View Condominiums

95% Confidence Interval for No Gulf View Condominiums

Confidence Index (for sales price)

Margin of Error 20.27656919
Mean 203.1888889
Upper Limit 223.4654581
Lower Limit 182.9123197

INTERVAL - (182.91, 223.465)

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INFERENCE: With 95% confidence we can say that the population mean of
sales price lies within this interval

Confidence Index (for days to sell)

Margin of Error 35.24802394
Mean 135
Upper Limit 170.2480239
Lower Limit 99.75197606

INTERVAL - (99.75,172.9)

INFERENCE: With 95% confidence we can say that the population mean of
days to sell lies within this interval.

Q6. Sample size estimation

Sample Size for Gulf View Condos - Sales Price

    Squares
1.95996398 3.84145882
z(alpha/2) 5 1
Margin of Error 40 1600
Standard 192.517753 37063.0853
Deviation 4 8
     
Sample Size 88.98519766
  approx. 89

INFERENCE: Using the 95% confidence we infer the sample size of Gulf
View condominiums should be 89 approx.

Sample Size for No Gulf View Condos - Sales Price

    Squares
1.95996398 3.84145882
z(alpha/2) 5 1
Margin of Error 15 225
Standard 43.8917235 1926.48339
Deviation 8 9
     

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 32.8911406
Sample Size 4  
  approx. 33  

INFERENCE: Using the 95% confidence we infer the sample size of - No Gulf
View condominiums should be 33 approx.
Q7. Price and days to sell estimation for No Gulf View Condominiums/Gulf
View Condominiums using provided list price

Estimate of the Final Selling Price and Number of days required to sell these
units.

Gulf View
List Price (Mean) 474.0075  
Sales Price (Mean) 454.2225  
     
Difference -19.785  
Percentage Difference -0.041739846  
  -4.173984589 95.82601541
List Price Given 589  
Sales Price 564.4152308  

INFERENCE:
 Estimate of Final Selling Price: $564,262 approx.
 Number of days required to sell :106 (mean days).

No Gulf View
List Price (Mean) 212.8055556  
Sales Price (Mean) 203.1888889  
     
Difference -9.616666667  
Percentage Difference -0.045189923  
  -4.518992299 95.4810077
List Price Given 285  
Sales Price 272.1208719  

INFERENCE:
 Estimate of Final Selling Price: $ 272,120 approx.
 Number of days required to sell: 135 (mean days).

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3. Contribution:

All the members of the group individually solved the Gulf Real Estate
Properties Case for better understanding of the topic and how to solve cases
on estimation of interval and sample sizes.
During the group discussion the queries were discussed and the answers for
all questions were verified and collated in a single document.
The report was divided and everyone’s contribution are mentioned below.
Inferences and presentation of this case was done question wise by the
following members:
 Aditya Verma
 Chetna Singh
 Khushi Kapoor
 Kanakapriya

4. Learning Outcomes:

As a team we worked towards solving the Case study and drew inferences
on the basis of statistical tools and estimation formulas. We observed
following learning from the case as a team:

1. We understood the statistical inferences deduced from the List Price,

Sale Price and Day to sell for the condominiums where the gulf Inc
has divided its markets into two categories basing on the location of
the properties.
2. We learned that the real estate Inc., gives much important to their List
Price and Sale Price and try to deduce figuratively how they are
balancing.

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 3. We learned the use and application of descriptive analysis and draw
conclusions on different measures.

5. Apart from the relevant class discussion which tools /techniques can
be applied to enhance your knowledge from other sessions on the
given data.

From the given data of the Gulf Inc,

 We can apply the concept of Graphical descriptive analysis i.e. bar
graphs, pie charts, box plots to depict the averages of all the
variables with respect to the location.

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