Statistics for Financial Decisions

STATISTICS FOR FINANCIAL DECISIONS

1. Provide the complete summary statistics for Market Price ($000) and
Age of house (years)
Market Price Age of house
Mean
777.024
4 Mean
17.7508
6
Standard Error
3.96787
5 Standard Error
0.57347
8
Median
777.556
6 Median
16.4858
5
Mode #N/A Mode 8
Standard
Deviation 79.3575
Standard
Deviation
11.4695
6
Sample Variance
6297.61
3 Sample Variance
131.550
7
Kurtosis -0.03001 Kurtosis -0.23037
Skewness -0.14392 Skewness
0.54670
9
Range
430.023
4 Range
54.5722
9
Minimum
541.092
4 Minimum -0.41193
Maximum
971.115
8 Maximum
54.1603
6
Sum
310809.
8 Sum
7100.34
3
Count 400 Count 400
2. Describe the shape of the distributions for Market Price ($000) and
Age of house (years)
Shape of distribution is an easy way to trace a lot of information, both as a graph and in a
number of expressions whose estimates of a resolution variable have lower or higher resolution
levels to happen.
Shape of the distributions for Market Price:
Uniform distribution: Statistically, a kind of probability cycle in which all results are equally
similar. Under uniform transport, all stimuli have the same chance of getting rid of potential

traits. This distribution, when displayed as a bar or line diagram, is the same for all possible
outputs. Like these lines, it can look like a square shape and so it is now and then represented as
a square shape scatter.
1 31 61 91 121151181211241271301331361391
0
200
400
600
800
1000
1200
Market Price ($000)
Market Price ($000)
Shape of the distributions for Age of house:
Multimodal distribution: Multimodel use in one example is usually an indication that
distribution in the general population is not normal. It may also show that your example contains
some examples of reactionary or horrible attitudes, prejudices or attitudes. When considering the
reason for heterogeneity, it may be necessary to examine the information; probably a factor in
why they are going so badly. This is in contrast to a truly multifaceted spread, in which only one
spread is expected. For example, the accompanying image shows two collections of titles, one
contemplating (top left) and one not (top right).

1 30 59 88 117 146175204233262291320349378
-10
0
10
20
30
40
50
60
Age of house (years)
Age of house (years)
3. Test whether the population’s average Market Price ($000) is
different from 777
Yes, it’s 777.0244378; which is near to 777.
4. Construct a 95% confidence interval for the Market Price ($000), also
Interpret the confidence interval
Calculation
M (Sample mean) = 777.0244
t = 1.97
sM = √(79.35752/400) = 3.97
μ = M ± t(sM)
μ = 777.0244 ± 1.97*3.97
μ = 777.0244 ± 7.800554
M = 777.0244, 95% CI (Confidence Interval) [769.223846, 784.824954]
Interpretation: The 95% confidence interval defines a range of values that contains the
population mean. The interval level has higher value of 784.824 and lower value of 769.223;
which indicates that any value outside this range has to be rejected or treated as outliners.