A realtor who flips houses (purchases and remodels them with the goal of reselling them for profit) has collected data on a variety of house characteristics and selling prices for a sample of 1,198 recent house sales in Iowa (Source:

Journal of Statistics Education). For each house sold, the following data are provided in the file iowahouses.

● LotArea = Lot size in square feet

● CentralAir = 1 has central air-conditioning, 0 does not have central air-conditioning

● GrLivArea = Above grade (ground) living area in square feet

● FullBath = Full bathrooms above ground

● HalfBath = Half bathrooms above ground

● BedroomAbvGr = Bedrooms above ground

● GarageCars = Size of the garage in car capacity

● Age = Age of the house when sold (in years)

● SalePrice = Selling price of the house The realtor would like to add a field called PricePerSQFT that contains the sales price per square foot (the value of the field SalePrice divided by the value of the field GrLivArea for each record) and a field called OldOrNew that has a value of Old if the age of the home is at least 20 years and has a value of New otherwise for each record.

a. Create a new field named PricePerSQFT in the file iowahouses. Define the value of this field for each record to equal the field’s SalePrice divided by the field GrLivArea.

b. Add a new field named OldOrNew to your results in part (a). Define the value of this field for each record to equal Old if the age of the home is at least 20 years, and New otherwise. Save your results as a file under the name iowahousesrevised.xlsx.