Reference no: EM132190450

Project - An analysis on the housing prices in Chicago

(a) Use statistical software to obtain a histogram. Do these house prices appear to be symmetrically distributed? If not, in which direction do they seem to be skewed?

(b) Computer µ and σ for the prices of all houses.

(c) What percentage of these prices lie in the interval (µ - σ) to (µ + σ)? What about in the interval (µ -2σ) to (µ + 2σ)? In the interval (µ - 3σ) to (µ + 3σ)?

(d) How do the percentage in part (c) compare to the corresponding percentage for a normal distribution (68.26%, 95.44%, and 99.74%, respectively)?

(e) Based on the percentages in the Empirical Rule approximately 34.13% of data values should fall in each of the intervals interval (µ - σ) to µ and µ to (µ + σ). Similarly, approximately 13.59% of the data values should fall in each of the intervals (µ - 2σ) to (µ - σ) and (µ + σ) to (µ + 2σ), and approximately 2.15% of the data values should fall in each of the intervals (µ - 3σ) to (µ - 2σ) and (µ + 2σ) to (µ + 3σ). Calculate the percentages of the values in the Goodyear Chicago data that fall in each of these intervals. How do they compare to the values given by the Empirical Rule?

(f) Select three random samples of 20 house prices each. Create a histogram for each sample, and calculate the mean and standard deviation of the prices for each sample. How well do your graphs and summary statistics match up with the corresponding population graphs and parameter values obtained in the earlier parts? Does it seem reasonable that they might not match very well?

The format:

(1) Write a report for answering part (a) to (f) above. The report must be in an essay format of APA style. Graphs must be plotted using software, e.g., EXCEL, and the calculations can be showed by hand-written or typed. Graphs and calculations should form an appendix which is attached at the end of your essay.

Attachment:- Assignment Files.rar