Regional vs.

National Housing Price Comparison Report 1

Report: Regional vs. National Housing Price Comparison

Tammy Cain

Southern New Hampshire University

Regional vs. National Housing Price Comparison Report 2

Introduction

Region: West North Central

Purpose: The purpose of this analysis is to compare housing prices and square footage in the

West North Central region to the national averages to determine if there are significant

differences. Specifically, I will investigate if housing prices in this region are lower than the

national average. Additionally, I will calculate a 95% confidence interval for the square

footage of homes in the West North Central region.

Sample: My sample consists of 500 random house sales from the West North Central region,

encompassing various states like MN, IA, and ND. Data is collected over recent months and

years to ensure a representative sample.

Questions and type of test:

Question #1: Are housing prices in the West North Central region lower than the national

market average?

The population parameter = The mean housing price in the West North Central region (mμ ¿

(x) - Hypothesis: The average housing price in the West North Central region is less than the

national average of $288,407.

First hypothesis: Null Ho: (mu) > = $ 288,407

Alt H a : ( mu ) < $ 288,407

Hypothesis Test Utilized: One-Tail Test

Question #2: Is the square footage for homes in the West North Central region different than the

average square footage for homes in the national market?

Regional vs. National Housing Price Comparison Report 3

Population Parameter: (mu) The mean square footage in the West North Central region

Hypothesis: The average square footage in the West North Central region is not equal to the

national average of 1,944 square feet.

Level of confidence: [Discuss how you will use estimation and confidence intervals to help you

solve the problem.]

1-Tail Test

Hypothesis: [Define the population parameter.]

Hypothesis: [Write null (Ho) and alternative (Ha) hypotheses. Note: For means, define a

hypothesis that is less than the population parameter.]

Hypothesis: [Specify your significance level.]

Data analysis: [Provide at least one histogram of your sample data.]

Data analysis: [In a table, provide summary statistics including sample size, mean, median, and

standard deviation.

Note: For quartiles 1 and 3, use the quartile function in Excel:]

=QUARTILE([data range], [quartile number])

Data analysis: [Summarize your sample data, describing the center, spread, and shape in

comparison to the national information (Under “Supporting Materials,” see the National

Summary Statistics and Graphs House Listing Price by Region PDF in the learning

management system). Note: For shape, think about the distribution: skewed or symmetric.]

Data analysis: [Check the assumptions by determining if the normal condition has been met.

Determine if there are any other conditions that you should check and whether they have

been met. Note: Think about the central limit theorem and sampling methods.]
Regional vs. National Housing Price Comparison Report 4

Hypothesis Test Calculations: [Determine the appropriate test statistic (t). Note: This

calculation is (mean – target)/standard error. In this case, the mean is your regional mean,

and the target is the national mean.]

Hypothesis Test Calculations: [Calculate the probability (p value). Note: This calculation is

done with the T.DIST function in Excel:

=T.DIST([test statistic], [degree of freedom], True).

The degree of freedom is calculated by subtracting 1 from your sample size.]

Interpretation: [Compare the p value and significance level.]

Interpretation: [Make the correct decision (reject or fail to reject).]

Interpretation: [Provide a conclusion in the context of your hypothesis.]

2-Tail Test

Hypotheses: [Define the population parameter.]

Hypotheses: [Write null and alternative hypotheses. Note: For means, define a hypothesis that is

not equal to the population parameter.]

Hypotheses: [State your significance level.]

Data Analysis: [Provide at least one histogram of your sample data.]

Data Analysis: [In a table, provide summary statistics including sample size, mean, and standard

deviation. Note: For quartiles 1 and 3, use the quartile function in Excel:

=QUARTILE([data range], [quartile number]) ]

Data Analysis: [Summarize your sample data, describing the center, spread, and shape in

comparison to the national information. Note: For shape, think about the distribution:

skewed or symmetric.]
Regional vs. National Housing Price Comparison Report 5

Data Analysis: [Check the assumptions by determining if the normal condition has been met.

Determine if there are any other conditions that you should check and whether they have

been met. Note: Think about the central limit theorem and sampling methods.]

Hypothesis Test Calculations: [Determine the appropriate test statistic (t). Note: This

calculation is (mean – target)/standard error. In this case, the mean is your regional mean,

and the target is the national mean.]

Hypothesis Test Calculations: [Calculate the probability (p value). Note: This calculation is

done with the TDIST.2T function in Excel: =T.DIST.2T([test statistic], [degree of

freedom]). The degree of freedom is calculated by subtracting 1 from your sample size.]

Interpretation: [Relate the p value and significance level.]

Interpretation: [Make the correct decision (reject or fail to reject).]

Interpretation: [Provide a conclusion in context to your hypothesis.]

Comparison of the Test Results: [Calculate and report the 95% confidence interval. Show or

describe the method of calculation.]

Final Conclusions

Summarize Your Findings: [In one paragraph, summarize your findings in clear and concise

plain language.]

Discuss: [Discuss if you were surprised by the findings including why or why not.]