Reference no: EM132856310

Due to a crisis in subprime lending, obtaining a mortgage has become difficult even for people with solid credit. In a report by the Associated Press (August 25, 2007), sales of existing homes fell for a 5th consecutive month, while home prices dropped for a record 12th month in July 2007. Mayan Horowitz, a research analyst for QuantExperts, wishes to study how the mortgage crunch has impacted the once-booming market of Florida. He collects data on the sale prices (in $1,000s) of 21 single-family homes in Fort Myers, Florida, in January 2007 and collects another sample in July 2007. For a valid comparison, he samples only three-bedroom homes, each with 1,500 square feet or less of space on a lot size of 10,000 square feet or less. Following table shows the information she collected for January and June 2007.

Number January July

1 100 136
2 190 235
3 192 210
4 200 180
5 202 187
6 200 180
7 204 192
8 222 200
9 198 187
10 201 190
11 210 202
12 190 180
13 198 188
14 200 192
15 202 200
16 180 173
17 182 170
18 187 169
19 188 168
20 190 170

21 192 180

-Calculate variance, standard deviation, Covariance, and the correlation coefficient in each of the two sample periods.