Sales Price Analysis - Assignment Example

Primitive analysis Appendix shows primitive analysis results for the sales price of the data. The analysis identifies a mean on $ 20128.7, a median of $ 19500, mode of $ 17500, a standard deviation of 33.89, and skewness of 0.98. The median is the most suitable measure of central tendency for the data and level of dispersion and skewness of the data explains this. The data has a high value of standard deviation and this means that some of the processes are distributed far from the mean and that the mean would not be a suitable estimator of the data.

The data is also significantly skewed, having a value of 0.98 and this identifies the suitability of the median as the best measure (Healey 78). Factors influencing the sales price Correlation analysis, regression analysis, and student t-test for difference in means across factors are possible tools for analyzing the effect of the factors on the sales price. Correlation analysis results suggest a moderate negative relationship between price and floor, a moderate positive relationship between price and distance, and a strong positive relationship between price and view.

End and furnish have weak and negative relationships with a price. Appendix 2 shows the results. Regression analysis for the relationship between price and the other variables, as independent variables, identifies a significant relationship (p=2.42*10-23, F= 39.69) and the model is reliable.  The model omits furniture because it is not significant. It is important to note that while the end is not significant when considered separately, it is significant when investigated with other variables and interaction effects could explain this.