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For properties - Essay Example

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This paper reports on a hypothesis test that assessed whether there was a significant difference in mean prices between two property trading sites: property news and property live. A total sample of 15 houses prices, 8 house prices from propertynew.com and 7 house prices from…
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Download file to see previous pages Thus, our null hypothesis and alternative hypothesis were as follows:
A t-test was used to ascertain whether the price data vary vastly, with regard to our assertion or it is steady. We opted for a t-test because, according to Dalgaard (2008), it is best suited for this work and it is ease to interpret. From the results of two sample, t-statistics tells how the mean of one population sample deviate from the mean of another population sample. It interprets the average of each property price and the mean difference between the two property sits. Moreover, t-test gives an explanation as to whether the difference in mean is statistically significant or not especially if the two populations, where the sample prices were gathered, have similar means.
We tabulated the sample prices for propertynews (sample w) and the sample prices for propertylive (sample l) and then calculated the relevant summary statistics using STATA. The results were as displayed in Table 1.
However, the tabulated t-value, at 13 degrees of freedom (8 + 7 -2) is given as 1.7709. Since the calculated t-statistics > the tabulated t-statistics, we reject Ho and conclude that the two means for the two property prices are significantly different at 5% significance level.
In summary, the paper has given a report on the hypothesis test that assessed whether there was a significant difference in mean prices between two property trading sites: property news and property live. The total sample used was 15 houses prices: 8 house prices from propertynew.com and 7 house prices from ...Download file to see next pagesRead More
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