Reference no: EM131390935

Interpret and use financial statistics and tools Assessment

Case Study - Background

The Bracken Ridge Real Estate

The firm of Bracken Ridge Real Estate is a prominent real estate based in Bracken Ridge, Brisbane. 

The firm provides real estate advice, property sales for investors and households. 

You are a member of the real estate team and specialised in giving advice to the potential buyers.

The client

Mr Entrepreneur is the Managing Director of North Point Ltd.  The management of the company is planning to expand into the real estate property market by purchasing units to rent out. Mr Entrepreneur wants to know whether it is a good time to buy property and future prospects of rental income for the business.

It is recommended that you do the practical components of the Case Study using an Excel spreadsheet and the theory component by using this Word document.  Once you have completed the practical component you can either upload the practical component separately in Excel format, or copy and paste your worksheet to the Word document and upload the whole assessment in one file.

The Brief

Your task in this case study is to estimate mean price of housing listed in the classified section of a local newspaper. Your task is to be done in three parts:

• Part A - sampling and reporting data
• Part B - analysing the data
• Part C - explaining the mathematical principles, statistical ratios and analysis tools you have used.

Part A -

i. Select a sample size from (population) approximately 50 properties for sale from the classified section of a local or other newspaper using an appropriate sampling technique. Explain the sampling method you used and justify your selection, e.g. random selection.

ii. Prepare a spreadsheet and record the details of the properties you have selected, including the suburb and value.  Arrange the values in an ordered array.

iii. Choosing an appropriate number of class intervals and class widths, include in your spreadsheet a grouped frequency distribution column. (You should have at least five properties in each class interval.) Plot the distribution in a histogram and analyse it in appropriate technical terms.

Part B -

i. Describe the population in your survey.

ii. Calculate the median of the sample from the ordered array. (See question 5, as a sample, in the Assessment 1 of this unit)

iii. Calculate the sample mean and standard deviation from the frequency distribution. (See question 6, as a sample, in the Assessment 1 of this unit)

iv. Calculate the median of the sample from the frequency distribution. (See question 6, as a sample, in Chapter 3 of the text book)

v. Calculate the mode of the sample from the frequency distribution. (See question 6, as a sample, in Chapter 3 of the text book)

vi. Add a cumulative frequency column to your frequency distribution and draw a cumulative frequency histogram.

Part C -

i. Explain briefly the principles of statistical standards and sampling techniques that are used to gather valid data.

ii. Briefly describe and provide examples of the mathematical principles, statistical ratios and analysis tools that are relevant to the financial services industry. As a minimum, you should describe the usage of those principles, ratios and tools you have used in your assessments.

Attachment:- Assignment.rar