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MET AD 571 Assignment 3

Descriptive Analytics

7 points

Assignment 3 Objective: Prepare a managerial report, starting with an executive summary; expected length up to 3-4 pages APA format, excluding cover page, table of content, and appendixes.

1. Provide several descriptive statistics for real estate sales in your neighborhood. Include:

o The total number of sales in your neighborhood since 2009.

o The mean sale price and gross square footage for residential properties in your neighborhood since 2009. How is this number changing over time? What does this mean to you?

o A five-number summary for both sale price and gross square footage for residential properties in your neighborhood since 2009. What do you think about the distribution of your data? What do you think about the Lower Quartile values compared to the Upper Quartile?

o The proportion of sales of residential, commercial, mixed, and other properties in your neighborhood since 2009. Are there ample commercial amenities in your neighborhood?

o The standard deviation of sale prices for residential properties and what is the Coefficient of Variation in your neighborhood since 2009.How risky is doing business in your neighborhood?

o The correlation between sale price and gross square feet for residential properties in your neighborhood since 2009. What is your assessment of the strength and direction of the relationship?

2. Perform k-means clustering, comparing your neighborhood to other neighborhoods. Choose at least 3 of the following KPIs:

o Median Sale Price for residential properties since 2009.

o Number of sales for residential properties since 2009.

o Standard deviation of sales of residential properties since 2009.

o Proportion of residential sales since 2009.

o Price of 1 gross square foot of residential real estate since 2009.

3. How would you describe the different clusters? How would you describe the cluster of your neighborhood?

4. Choose one other neighborhood, and test the hypothesis that, starting in 2009, the average residential property costs more, less, or a different amount in your neighborhood. Note: This requires a t-test. Please evaluate whether there is a similar opportunity for investment or avoidance in a neighborhood chosen for comparison.

5. Write 3-4 pages summarizing your findings with a focus on the output, interpretation of the output, and what the insights mean for our decision-making process.