This project will primarily cover topics from chapters 9 and 10. All papers will need to be submitted on IvyLearn. You will be turning in a paper that should include section headings, graphics and tables when appropriate and complete sentences which explain all analysis that was done in addition to all conclusions and results. All work should be your own.

You will be performing an analysis on homes in your neighborhood. One of the biggest purchases we make in our lifetimes is a home. The purpose of this project is to help you make an informed decision about housing values. This will help to ensure you receive a good deal when purchasing a home. Please note that although many websites exist for finding homes that are for sales and conducting such research, we are using Zillow here because we will be comparing Zillow's own "Zestimate" to the actual selling prices of the homes.

Steps (all statistical analysis to be done in Excel and/or StatCrunch):

1.Go to the real estate website www.zillow.com and enter the particular zip code you are interested in living in. Randomly select at least 30 homes for sale and record the following information:

a.Asking price

b.Square footage

c.Number of days on the market

d.Cost per square foot

e.Number of bedrooms

f.Number of bathrooms

2.Also randomly select 30 recently sold homes and determine how much higher/lower the home sold for compare to Zillow's "Zestimate". You can determine the percent difference by computing (selling price - Zestimate)/Zestimate.

3.Confidence intervals:

a.Determine 95% confidence interval for each of the variables in question one. Interpret each of the intervals.

b.Determine a 90%, 95% and 99% confidence interval for percentage difference in "Zestimate" and selling price from question two. Interpret the intervals and explain why each of your intervals are different (which are wider and why?).

4.Hypothesis testing:

a.The current average home listing price in Indiana is $134,400 (www.realtor.com). Form and conduct a hypothesis test at the .05 level that compares the average home price in your area to $134,400.

5.Put everything together into an organized paper and submit on IvyLearn. Check the rubric on the next page to make sure that you have completed all necessary work.

Paper is well organized with clear section headings, well organized information and graphics when appropriate 10

Data Collection

Step 1 data was collected and organized in a spreadsheet and attached with the project

15

Step 2 data was collected and organized in a spreadsheet and attached with the project

15

Confidence Intervals

6 confidence intervals for data from step 1: construct and interpret

25

3 confidence intervals for data from step 2: construct and interpret

15

Explanation as to why the intervals from step 2 are different

5

Hypothesis Testing

Hypothesis test was clearly set up

5

Hypothesis test was conducted correctly and conclusion was stated

10

TOTAL

100