See attached file.

Problem Set 1

The next tab contains dataon houses sold in Baton Rouge, Louisiana in mid-2005. The dataset contains the following variables:

Price: The price the house sold for

Square Feet: The size of the house in square feet

Beds: The number of bedrooms in the house

Baths: The number of bathrooms in the house

Year Built: The year in which the house was built

Age: The age of the house in years

Pool: Does the house have a pool (yes/no)

Fireplace: Does the house have a fireplace (yes/no)

Waterfront: Is the house on the waterfront (yes/no)

Days on Market: How many days the house spent on the market before it was ultimately sold

Occupancy: Is the house occupied by the owner, a tenant, or is it vacant

Style: What is the architectural style of the house?

Use the data provided to answer the following questions. Problem 1.1 comes from material in week 1, Problems 1.2 and 1.3 relate to material from week 2, and problems 1.4 and 1.5 is related to the concepts and topics from week 3. Should you encounter any difficulties with these problems, the optional problems below are very similar to the questions in this problem set, and the answers to these questions can be found in the back of the textbook. You can also request that the tutor work extensively with you on the optional problems.

Problem 1.1

Use the Baton Rouge house price data to do the following:

(a) Which of the variables are categorical and which are numerical?

(b) Which of the categorical variables are nominal and which are ordinal?

(c) Which of the numerical variables are ratio and which are interval?

Problem 1.2

Use the Baton Rouge house price data to do the following:

(a) Create a summary table and an ordered summary table of the architectural styles of the homes sold.

(b) Construct a bar chart, a pie chart, and a Pareto diagram.

(c) Which graphical method do you think is best to portray these data?

(d) Based on this data, what conclusions can you make about architectural styles in Baton Rouge?

Problem 1.3

Use the Baton Rouge house price data to do the following:

(a) Construct a frequency distributionand a percentage distribution of the number of bedrooms in the sold houses.

(b) Construct a histogramand a percentage polygon.

(c) Plot a cumulative percentage polygon.

Problem 1.4

Use the Baton Rouge house price data to do the following:

(a) Compute the mean, median, first quartile, and third quartile for the price variable.

(b) Compute the variance, standard deviation, range, interquartile range, coefficient of variation, skewness, and Z scores for the price variable.

(c) Are the data skewed? If so, how?

(d) Based on the results of (a) through (c), what conclusions can you reach concerning price?

(e) Calculate the proportion of house prices that are +/- 1, +/- 2, and +/- 3 standard deviations of the mean.

(f) Compare and contrast your findings with what would be expected on the basis of the empirical rule.

Problem 1.5

Use the Baton Rouge house price data to do the following:

(a) Compute the covariance between house price and house size.

(b) Compute the coefficient of correlationbetween house price and house size.

(c) Construct a scatterplot between house price and house size with house price on the Y-Axis.

(d) Which of (a)-(c) do you think is the most valuable means to understand the relationship between house price and house size?

(e) What conclusions can you reach about the relationship between house price and house size?

Complete, Neat and Step-by-step Solutions are provided in the attached file.