- Part 120

11 years ago
busad265
Justin

Quiz #11 Review – Calculating confidence intervals

I’ve worked out the problems for Quiz 11 and scanned to PDF. You can download the PDF here: BUSAD265_Quiz11

Sorry it’s a bit messy (my kids take my good pencils so I’m stuck using a pen) but hopefully you can follow along. I will step through both problems during class today (11/14).

11 years ago
busad265
Justin

Exam #3 Review

For Exam #3 you need to be prepared to answer questions on the following topics.

Ch. 4 Probability

Define Experiment, Event, Independent Events, Mutually Exclusive Events
Define and calculate Sample Space
Build and interpret Joint Probability Tables

Ch. 6.2 Normal Distribution

Z-Scores – what are Z-scores, how are they calculated, how are they used.
Know how to use the Z-score look up table (page 193 or 794).
Calculating probabilities using the normal distribution curve.

Ch. 8 Statistical Inference

Point Estimate
Interval Estimate
Confidence Intervals
Use equation 8.1 (p. 260) to determine confidence intervals when standard deviation is known.
Use the t-statistic and understand how to use look up table with degrees of freedom (p. 795)
Use equation 8.3 (p. 269) to determine confidence intervals when standard deviation is unknown.
Know how to estimate sample size using equation 8.7 (p. 281)

Ch. 9 Hypothesis Testing

Null Hypothesis
Alternative Hypothesis
Rejection Region
Type I and Type II Error
p-value
Use of z-test and t-test in hypothesis testing

Like previous exams I will provide any necessary equations and/or look up tables (no need to memorize). But, you should be able to identify terms and what they represent.

11 years ago
busad265
Justin

Term Project

Due Thursday, December 5th.

The Term Project will be an extension of the work you’ve done with the Pueblo Property Data in previous exercises. Here’s what you need to do to complete the project.

1. Produce an appropriate set of graphics and descriptive statistics for your updated neighborhood data. You must use your 30 property records but you can use the other records from your neighborhood as well if you’d like (using more records will probably improve your model accuracy).

2. Build a regression model to estimate Total Value based on one or more independent variables (e.g., Total Finished Square Feet, Number of Bathrooms, etc.). If the best model is bivariate (only one independent variable) that’s fine but be sure to experiment with multiple independent variables and justify your decision regarding what variables are included and excluded. Report the appropriate statistics used to assess how well your model fits the data.

3. Use your model to estimate the value of 5 sample properties. The variables used will depend on Step #2 and the range of values selected is up to you. Just be realistic (e.g., don’t attempt to estimate the value of a 20,000 sq ft home or a home with 16 bathrooms).

4. Use probability theory and statistical inference to determine the accuracy of your 5 sample property estimates. In other words, produce confidence intervals for your estimates.

5. Conduct a Hypothesis Test on your property data. You are responsible for determining the hypothesis you wish to test, setting up the appropriate test, calculating the necessary statistics and interpreting the results.

6. Produce a PowerPoint file to present all steps above. Include slides that summarize your results and conclusions. Your target audience is a typical real estate investor interested in buying single family homes in your assigned neighborhood. What advice would you give the investor? The Power Point slides should be clear, neat and professional looking. Imagine you’re high paid consultant and you want the investor to pay you for more work and provide good references to other potential clients.