BUSINESS STATISTICS ASSESSMENT

BUSINESS
STATISTICS
ASSESSMENT TASK 2
STUDENT ID:
[Pick the date]

PART A
Question 1
The requisite data for 50 houses has been collected for post code 3162 as shown below.
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Question 2
The requisite descriptive statistics as obtained from Excel is summarised below.
Question 3
The description of the various variables based on the above descriptive statistics has been
carried out below.
Price
The skew of the price data is -0.10 which implies that the shape of the distribution would be
approximately symmetric. The mean price of the house is $1,517,680. However, this price is
significant different from the median price of $ 1,460,000. This implies that there are 25
houses in the given sample which have been sold at a price not exceeding $1,460,000. The
difference in mean and median value of the house implies that the underlying variable is not
normally distributed. The variability in price is captured by measures such as variance,
standard deviation and range. The minimum price of the house is $ 405,000 while the
maximum price of a house included in the given sample is $2,300,000. Comparing the
standard deviation of the given variable with the mean, it can be implied that price variation
is medium only and not very high (Hillier, 2016).
Size
The skew of the size data is -0.78 which implies that the shape of the distribution would be
asymmetric with a longer tail on the left side of the mean. This may indicate presence of
outliers on the lower side. The mean size of the house is 574.45 m2.. However, this size value
is significant different from the median house size of 637 m2. This implies that there are 25
houses in the given sample whose size does not exceed 637 m2.. The difference in mean and
median value of the house implies that the underlying variable is not normally distributed.
The variability in size is captured by measures such as variance, standard deviation and
range. The minimum size of the house is 10 m2 while the maximum size of a house included
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