Business Research Assignment

-Priyanka Mehar
-193F0026

 This assignment was carried out after filtering and sorting the data and deleting the
rows which had any empty cell which reduced the data from approx. 30,000 entries
to 22010 entries

1. The descriptive for the 3 variables: Price, Review rating (Property) and Number of
Reviews

Descriptives
Statistic Std. Error
Price Mean 154.76 1.004
95% Confidence Interval for Lower Bound 152.79
Mean Upper Bound 156.73
5% Trimmed Mean 139.95
Median 125.00
Variance 22199.071
Std. Deviation 148.994
Minimum 10
Maximum 10000
Range 9990
Interquartile Range 105
Skewness 21.016 .017
Kurtosis 1047.145 .033
Review Scores Rating Mean 90.73 .061
(Property) 95% Confidence Interval for Lower Bound 90.61
Mean Upper Bound 90.85
5% Trimmed Mean 91.66
Median 90.00
Variance 82.260
Std. Deviation 9.070
Minimum 20
Maximum 100
Range 80
Interquartile Range 15
Skewness -2.112 .017
Kurtosis 9.450 .033
Number Of Reviews Mean 16.46 .163
95% Confidence Interval for Lower Bound 16.14
Mean Upper Bound 16.78
 5% Trimmed Mean 12.80
Median 7.00
Variance 587.112
Std. Deviation 24.230
Minimum 1
Maximum 257
Range 256
Interquartile Range 17
Skewness 3.155 .017
Kurtosis 13.925 .033

 Price: For any commodity pricing is the first and foremost factor which decides the
salability of the product or service keeping in mind the same I selected Price as a
variable. To be competitive in the market we have to do comparative analysis of our
pricing in comparison to competitors. The mean lies between 152.8 and 156.73 which
show that the average pricing is medium and affordable. The median tells maximum of
accommodations are priced at $125. The Range is 9990 which tells us that the data’s
highest value and lowest value are greatly varied and the data is positively skewed
(21)or skewed on the right side which in turn tells that the prices fall on the lower side
of the scale and there are very few high prices.

 Review Rating( Property): Review rating are an essential part of business as

consumers rely on these reviews to decide whether or not they want to book a place to
stay. These review rating are given by guests as well as the hosts but here we are
talking about the rating given by the guests. The more and better reviews a host has the
more likely the place is to attract the other guests. It is important to note that the hosts
who are able to connect to guests and enhance their experience of stay are successful
in getting better reviews and thus building a stronger reputation for their property and
thus increasing future bookings. The mean of the review rating is found to be 90.73
which suggests that all the properties listed in Airbnb New York have a high review
rating and thus are desirable places to stay. The median (90) suggests that the middle
value of the data is also in accordance with the mean. The skewness is -2 that suggests
that the distribution is negatively skewed or skewed to the left which also suggests that
the reviews are more on the higher side of the scale as it can be inferred from above.
  Number of reviews: Number of reviews can be used as an alternative or proxy to
know the demand of a certain renting place hence by studying this variable we can get
a good estimation of the demand of the listings as reviews can be given only by
visiting the place and higher number of reviews indicate that certain listing is popular
or in demand. The mean (16.46) suggests that majority of listings are not that popular
and have low demand. The median if 7 which also suggests the same. The Range is
256 which tells us that the data’s highest value and lowest value are greatly varied and
the data is positively skewed (3) or skewed on the right side which in turn tells that the
number of reviews fall on the lower side of the scale and there are very few listings
with higher number of reviews which is likely to be the case.

2. 1) Null hypothesis: The apartments are not costly/highly priced.

Alternative hypothesis: The apartments are costly/highly priced.

2) Null hypothesis: The maximum number of reviews is not written for the listings ranging
from 10 to 300 dollars.
Alternative hypothesis: The maximum number of reviews is written for the listings
ranging from 10 to 300 dollars.

3) Null hypothesis: The apartments in Manhattan do not have high demand.

Alternative hypothesis: The apartments in Manhattan have high demand.

3. Frequency Tables for Neighborhood, Property Type and Number of Beds

Neighborhood
Frequency Percent Valid Percent Cumulative
Percent
Bronx 215 1.0 1.0 1.0
Brooklyn 8432 38.3 38.3 39.3
Manhattan 11693 53.1 53.1 92.4
Valid
Queens 1576 7.2 7.2 99.6
Staten Island 94 .4 .4 100.0
Total 22010 100.0 100.0

 This table suggests that the highest number of listings is in the borough of Manhattan
(53%) and Brooklyn (38%). Manhattan is densely populated but is the hub of many
 multi-national companies and their headquarters which makes sense as to why the
listings are higher in this borough whereas area-wise Brooklyn is the largest borough
and most populous which makes it second largest hub for the listings. Moreover, by
rearranging data it was found that the more popular listings were located in these
regions as well as most expensive ones too which is likely because of higher demand
at popular listings .

Property Type
Frequency Percent Valid Percent Cumulative
Percent
Apartment 19527 88.7 88.7 88.7
Bed & Breakfast 136 .6 .6 89.3
Boat 6 .0 .0 89.4
Bungalow 3 .0 .0 89.4
Cabin 2 .0 .0 89.4
Camper/RV 6 .0 .0 89.4
Castle 1 .0 .0 89.4
Chalet 1 .0 .0 89.4
Condominium 48 .2 .2 89.6
Valid Dorm 21 .1 .1 89.7
House 1547 7.0 7.0 96.8
Hut 1 .0 .0 96.8
Lighthouse 1 .0 .0 96.8
Loft 590 2.7 2.7 99.5
Other 28 .1 .1 99.6
Townhouse 83 .4 .4 100.0
Treehouse 3 .0 .0 100.0
Villa 6 .0 .0 100.0
Total 22010 100.0 100.0

 This table suggests that the highest number of listings include apartments (88.7%) as
the property type preferred this may be due to the fact that people like solitude and
prefer no disturbance therefore renting a place in which they can be by themselves.
Beds
Frequency Percent Valid Percent Cumulative
Percent
Valid 0 1 .0 .0 .0
1 14452 65.7 65.7 65.7
 2 4918 22.3 22.3 88.0
3 1580 7.2 7.2 95.2
4 596 2.7 2.7 97.9
5 222 1.0 1.0 98.9
6 146 .7 .7 99.6
7 38 .2 .2 99.7
8 16 .1 .1 99.8
9 9 .0 .0 99.9
10 15 .1 .1 99.9
11 3 .0 .0 99.9
12 4 .0 .0 100.0
16 10 .0 .0 100.0
Total 22010 100.0 100.0

 This table indicates that the number of beds preferred by the guests is one (66%) and
two (22%). This can be seen in accordance with the previous table that suggested most
preferred property type is an apartment and as it has tiny space and no sharing only
one bed is sufficient.

4. The Cross tabulation tables

1) Assumptions used to solve this question (Price category was transformed to reduce the number of
groups of price category values) – RECODE: Price
 (10 thru 300 as category 1)
 (300 thru 600= category 2)
 (600 thru 900= category 3)
 (900 thru 1500= category 4)
 (1500 thru 3000= category 5)
 (3000 thru 4500= category 6)
 (4500 thru 6000= category 7)
 (ELSE= category 8)
VARIABLE LABELS pricecat 'Pricecategory'.
EXECUTE.

Neighborhood * Pricecategory Cross tabulation

Pricecategory Total
1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00
Neighbourhood Bronx 215 0 0 0 0 0 0 0 215
Brooklyn 8185 218 13 14 0 2 0 0 8432
Manhattan 10664 883 102 31 10 1 1 1 11693
Queens 1555 19 1 1 0 0 0 0 1576
Staten Island 91 1 1 0 0 0 1 0 94
Total 20710 1121 117 46 10 3 2 1 22010
  The above table clearly shows that Manhattan has the largest number of listings in
price ranging from 10-300 dollars as well as in other ranges (300-600 and 600-900
dollar ranges). Therefore it can be inferred that the demand is high in Manhattan and
therefore the price too. Moreover, Manhattan caters to listings of varied price range.

2) Assumptions used to solve this question (Number of reviews category was transformed to reduce the
number of groups of values) –

 RECODE: Number Of Reviews

 (1 thru 5 as category 1)
 (5 thru 10= category 2)
 (10 thru 50= category 3)
 (50 thru 100= category 4)
 (100 thru 150= category 5)
 (150 thru 200= category 6)
 (200 thru 250= category 7)
 (ELSE= category 8)
VARIABLE LABELS numberofreviewscat 'category of number of reviews'.
EXECUTE.
 and same assumption as previous part.

Pricecategory * category of number of reviews Cross tabulation

Category of number of reviews Total

1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00
Pricecategory 1.00 9125 3352 6514 1351 293 56 17 2 20710
2.00 478 188 390 57 7 1 0 0 1121
3.00 50 24 37 6 0 0 0 0 117
4.00 18 9 19 0 0 0 0 0 46
5.00 8 0 2 0 0 0 0 0 10
6.00 3 0 0 0 0 0 0 0 3
7.00 2 0 0 0 0 0 0 0 2
8.00 0 0 1 0 0 0 0 0 1
Total 9684 3573 6963 1414 300 57 17 2 22010

 The above table shows that majority of people have given maximum number of
reviews for the listings which have the price ranged from 10 to 300 dollars followed
by listings with price ranged from 300 to 600. It can be seen number of reviews
decrease as the price range increases which tells us that majority of people prefer
listings ranging from 10-300 dollars if we assume that number of reviews is a proxy
for demand of the listing.
5. Co-relation table for variables: Number of reviews and Price

Correlations
Review Scores
Price Rating
Price Pearson Correlation 1 .060**
Sig. (2-tailed) .000
N 22010 22010
Review Scores Rating Pearson Correlation .060** 1
Sig. (2-tailed) .000
N 22010 22010
**. Correlation is significant at the 0.01 level (2-tailed).