Hypothesis Testing: Real Estate

Hypothesis Testing: Real Estate

Hypothesis Testing – Two Sample: Real Estate Price and Size
Allan Nowling Jr., Angela Johnson, Tamara Pikes, Kristina King
RES/342
October 04, 2010
Esmaail Nikjeh

Abstract
The test designs are to examine thoroughly information to reject or make every effort to reject the hypothesis; sometimes resulting in accepting the hypothesis.   The purpose of Team D’s research is to compare size (square footage) of homes and distance from within the city to see if significant differences exist in housing prices based on both factors. Team D will evaluate real estate data sets, Price per Home, Size per Home, and Distance, to formulate numerical and verbal hypotheses, perform a five-step hypothesis test, and describe and explain if the results answer the research question.   The hypothesis statement is a guess of what causes a process, procedure, or service to exhibit problems, defects, deviations, or errors.   The purpose of the hypothesis statement is to state clearly the testable theory.   The problem statement Team D will address is does a correlation exists between housing prices because of the size of homes and distance.  

Hypothesis Testing – Two Sample: Real Estate Price and Size
Two-sample hypothesis tests compare two sample estimates with each other, instead of non-sample claims or former belief of population parameters.   The steps in two-sample tests are much like a one-sample test, researchers state the hypotheses, make a decision rule, conduct sample statistics, and makes decisions (Doane & Seward, 2007).   The test designs are to examine thoroughly information to reject or make every effort to reject the hypothesis; sometimes resulting in accepting the either the null or alternative hypothesis.   The purpose of Team D’s research is to compare size (square feet) of homes and distance from the city to see if significant differences exist in housing prices based on both factors. Team D will evaluate real estate data sets, Price, Size, and Distance, to formulate...