Regional vs.

National Housing Price Comparison Report 1

Report: Regional vs. National Housing Price Comparison

Rochelle Backstrom

Southern New Hampshire University

Regional vs. National Housing Price Comparison Report 2

Introduction

Region:I chose “East South Central” regional real estate company to examine.

Purpose: I am looking to see if the region itself housing prices and housing square footages are

different from those of the national market. So in order to do this i have to take a random

sample of all the listing prices from 2019 and then compare them to the statistics from the

same year. So this information would tell me if the data is up-to-date or not and if it is

prepared and available.

Sample: To define my region sample i took 500 of the housing listings from the 1000 entries and

each of those listings were given a random number. To get thoe random numbers i used the

function (=random()). This will assign each of those listings were assigned a number between 0

and 1. Which gives me the information if everything is updated. After that I took the number and

sorted them smallest to largest to determine if my data in the sample for the homes listed in that

region.

Questions and type of test: I will asnwer two questions asked by the reginal sales director.

1. Are the housing prices in the “East South Central” region market higher than the national

market price?

2. Is the square footage of the homes in the “East South Central” region different from the

average square footage for the houses in the national market?

To answer these questions I would work using the null and alternative hypothesis to reject or not

reject them based on the results I have found. I can use the two following hypotheses. The null

and Hypothesis(H0) can be written as (µ) is the listing price is equal to the national

average price of 288,407 or not. In order for me to find the alternative

Regional vs. National Housing Price Comparison Report 3

hypothesis it will be written as (Ha) which means that the lisitng price is

greater than $288,407 so I will use the right-side tail test. This can help me

determine if the national average price in the parameter is greater than the

average listing prices. By using the teo tail test i can determine if the value is

determined in the null hypothesis, whether it is equal to or less than. The p-

value can help me find the test statistic and if the value is calculated from

the sample data when testing the hypothesis. The p-value will help support

thr findings to reject or not reject my hypothesis. After gathering all of my

information I can conduct the neccessary information for testing.

Level of confidence: The intervals will help me determine the level of significance in the

hypothesis testing. Meaning that 95% of the levellies between $288,407 and 249,940.

1-Tail Test

Hypothesis: The hypothesis for the 1-tail test are:

Null: The mean listing price in the “East South Central” region would be determining if the

housing listing price is less than maket average. meaning the population is ($228,407) the

home’s listing price of the 500 home’s that are random in the region of East South Central.

Meaning the Null would be =$288,407 and the Alternative Hypothesis would be <288,407 so

the lvel of analysis can be 0.05.

Data analysis:
Regional vs. National Housing Price Comparison Report 4

Data analysis: The sample of “South East Central listing price is around $60,200 less than the

market price which is (288,407-228,133). Moreover, the national market price for the median

is 34,000 more when it is compared to the median price of ($249,940). this means both of the

samoles are similar or close to the statistics, and are lower.

Regional vs. National Housing Price Comparison Report 5

Data analysis: The chart shows that the right skewed shape also has some major gaps meaning

that there were no listings in that range. The grapgh also shows the range from $112,050 to a

spread of 537,900. Giving us the level and sample size of the 500 random lisitngs.

Hypothesis Test Calculations: The proper testing i used the formula of excel: (maually

inputting:Mean-target)/standard error or =(228,133-$288,407)/3735.004 which equals to -

16.13. So this equates to the p-value using t-DIST(test statistic),(degree of freedom), true) is

the function in excel. So T.Dist(-16.13),(500-1) True). So my p-value for the sample is

6.98E+09.

Interpretation: If our level is 0.05 and our p-value is 0.000 then our level is less significant and

we can reject the null hypothesis. We can use our p-value to conclude that there is

considerable evidence for the mean for the lisiting price in the region of “East South

Central” and it is lower than the average market lisitng price.

2-Tail Test

Hypotheses: The test is to determine the average square footage for “East South Central” region,

and if it is equal to the mean square footage of the market.

Hypotheses: The alternative hypothesis is H1:µ≠1944, or the square footage mean in

the homes in the said region. So the region is different or not equal to the

average square footage.

Regional vs. National Housing Price Comparison Report 6

VS
Regional vs. National Housing Price Comparison Report 7

Data Analysis: To summarize the statistics above the mean of 2047 sq ft. for the region. In

comparison to the average market price of 1944 sq ft. these are close of only a small sq ft.

which the center or the median square footage of 2004 sq ft. when compared to teh market

median price. Furthermore when comparing data they are symmetrical. In accordance with

the limit our conditions have been met and distributed accordingly and we have a big

enough sample size with the 500 random listings.

Hypothesis Test Calculations: When figuring out the testing statistics foe the two tailed test, i

had to use the calculations from the earlier test. by (mean-target)/standard error, which

resulted in 1920 as our testing statistic. With the p-value for this sample is 0.000, so it can

be calculated with the formula of =T,DIST.2T (1920,500-1) True. So the homes for “East

South Central” region are not equal to the square footage market homes.

Comparison of the Test Results: In comparison the test results range for the value were 95%

interval of the square footage for the “East South Central” region. I used the function of

=confidence.t (alpha, std dev, sample size) in excel to get the margin of error. I found my

upper and lower bound intervals. So the result of the lower interval was the sample mean

minus the margin of error or CI. So the upper bound was the sample mean plus the margin

of error or CI in the region. CI= 2047 -30=2017 and CI=2047 + 30=2077.

Final Conclusions
Regional vs. National Housing Price Comparison Report 8

Summarize Your Findings: In conclusion after all of my analysis the average listing price in

the region is lower than the national average. which means the square footage is not equal to

the national square footage but it is higher. This is showing that the region is reasonable to

live in, and that you can purchase a home with a lot of square footage for the amount of

money. overall the regional director can use this report to help him with his clientle.

Discuss: I was somewhat surprised by the findings being that I did everything manually and was

still able to come out with the conclusion that I had. it was really difficult for me doing this

project.