[Exercise 5e] [Part 1] Are the observed associations consistent with what you in theory expect? [Part 2] Discuss the issues with speculating on theory based only on what you observe. [Choose ONE answer for each part] A. [Part 1]ln theory we know that price is always affected by size and style. So all the associations we observed are consistent with theory. B. [Part 1] In theory, selling price substantially depends on home size and we expect that larger homes will sell for more. The data supports this belief thereby providing confidence in this theory. Although we suspect that style affects size and price, we do not have much theory about what to expect. The data supports this suspicion. C. [Part 1] As theory is just belief, not fact, we can theorize anything we wish. So talking about what we observe being consistent with theory is meaningless. D. [Part 2] Speculating on theory only from observations can lead to poorly founded conclusions and risky decision making. For example we observed in the data that ranch style homes tend to sell for more than other styles. We might theorize this is evidence that ranch style homes are more in demand than other styles and perhaps focus our attention on selling ranch style homes. But we also observed in our data that ranch style homes tend to be larger than other styles. This may better explain why they sell for more and our focus should be on selling larger homes, not just ranch style. E. [Part 2] Speculating on theory only from observations may lead to contradictions. If we theorize something different than what we know from another theory we will not know which theory is correct. For example, we observed in the data that certain styles tend to be larger than others. So we might theorize from this that the style determines (in part) the size of the home. But we know (in theory) that ranch homes are single story, so we expect them to be smaller than trilevel homes. However we observed in the data that, to the contrary, ranch style homes tend be be larger than trilevel. Which theory is wrong? F. [Part 2] The issue is that we must follow the principles of "Grounded Theory" building when speculating from what we observe so long as we follow. Grounded theory is as an inductive, comparative methodology that provides systematic guidelines for gathering, synthesizing, analysing, and conceptualizing qualitative data for the purpose of theory construction. For example, we observed in our data that ranch style homes have a higher price per square foot than other styles. From this we might theorize that different styles have different desirability qualities that affect price per square foot such as number of bedrooms, view, pool, etc. By coding and synthesizing this data and associating it with price per square foot, we can infer that ranch style homes are more desirable than other styles. [Exercise 3b] [Part 1] By looking at the graph estimate the average or "expected" value PRICE. ...snip... [Part 2] Explain what this means in terms of what you see on the graph (i.e. is this the largest bin? Halfway points? Center?)...snip... [Choose only one for each part] A. [Part 1] The expected value is middle value (median). The location on the graph where the Ogive is 50% approximately the midde of the $280K$300K range so about $290,000. B. [Part 1] The expected value (average) is the sum of all the frequencies times their values. In the graph this is approximately the sum of the midpoints times their frequencies so $250K2%+$270K27%+$290K35%+$310K18%+$330K12%+$350K5%+$370K0%+ $390K2%= about $311K C. [Part 1] As with categorical variables, the expected value is the most frequent value (mode) which is in the $280K$300K range. D. [Part 2] The expected value or average is where the left side ?balances? with the right side on the histogram. It's a little to the right of the most frequent bin and much farther right from the middle (50\% point or median). In the middle of the $300,000$320,000 bin. E. [Part 2] This is the tallest bar on the graph. Since there is only one such bar, the distribution is unimodal. F. [Part 2] This literally the middle that splits the area of the graph in two parts (50\% above and 50% below). It's a little to the left of the center of the most frequent bin. [Exercise 5e] [Part 1] Are the observed associations consistent with what you in theory expect? [Part 2] Discuss the issues with speculating on theory based only on what you observe. [Choose ONE answer for each part] A. [Part 1]ln theory we know that price is always affected by size and style. So all the associations we observed are consistent with theory. B. [Part 1] In theory, selling price substantially depends on home size and we expect that larger homes will sell for more. The data supports this belief thereby providing confidence in this theory. Although we suspect that style affects size and price, we do not have much theory about what to expect. The data supports this suspicion. C. [Part 1] As theory is just belief, not fact, we can theorize anything we wish. So talking about what we observe being consistent with theory is meaningless. D. [Part 2] Speculating on theory only from observations can lead to poorly founded conclusions and risky decision making. For example we observed in the data that ranch style homes tend to sell for more than other styles. We might theorize this is evidence that ranch style homes are more in demand than other styles and perhaps focus our attention on selling ranch style homes. But we also observed in our data that ranch style homes tend to be larger than other styles. This may better explain why they sell for more and our focus should be on selling larger homes, not just ranch style. E. [Part 2] Speculating on theory only from observations may lead to contradictions. If we theorize something different than what we know from another theory we will not know which theory is correct. For example, we observed in the data that certain styles tend to be larger than others. So we might theorize from this that the style determines (in part) the size of the home. But we know (in theory) that ranch homes are single story, so we expect them to be smaller than trilevel homes. However we observed in the data that, to the contrary, ranch style homes tend be be larger than trilevel. Which theory is wrong? F. [Part 2] The issue is that we must follow the principles of "Grounded Theory" building when speculating from what we observe so long as we follow. Grounded theory is as an inductive, comparative methodology that provides systematic guidelines for gathering, synthesizing, analysing, and conceptualizing qualitative data for the purpose of theory construction. For example, we observed in our data that ranch style homes have a higher price per square foot than other styles. From this we might theorize that different styles have different desirability qualities that affect price per square foot such as number of bedrooms, view, pool, etc. By coding and synthesizing this data and associating it with price per square foot, we can infer that ranch style homes are more desirable than other styles. [Exercise 3b] [Part 1] By looking at the graph estimate the average or "expected" value PRICE. ...snip... [Part 2] Explain what this means in terms of what you see on the graph (i.e. is this the largest bin? Halfway points? Center?)...snip... [Choose only one for each part] A. [Part 1] The expected value is middle value (median). The location on the graph where the Ogive is 50% approximately the midde of the $280K$300K range so about $290,000. B. [Part 1] The expected value (average) is the sum of all the frequencies times their values. In the graph this is approximately the sum of the midpoints times their frequencies so $250K2%+$270K27%+$290K35%+$310K18%+$330K12%+$350K5%+$370K0%+ $390K2%= about $311K C. [Part 1] As with categorical variables, the expected value is the most frequent value (mode) which is in the $280K$300K range. D. [Part 2] The expected value or average is where the left side ?balances? with the right side on the histogram. It's a little to the right of the most frequent bin and much farther right from the middle (50\% point or median). In the middle of the $300,000$320,000 bin. E. [Part 2] This is the tallest bar on the graph. Since there is only one such bar, the distribution is unimodal. F. [Part 2] This literally the middle that splits the area of the graph in two parts (50\% above and 50% below). It's a little to the left of the center of the most frequent bin