examine data used by a Real Estate investment advisor. She wants you to answer some specific

In this assignment, you will examine data used by a Real Estate investment advisor. She wants you
to answer some specific questions put by clients about houses prices in the neighborhood
encompassed by 4 suburbs around the city of Melbourne. The data is contained in the file
‘Real_Estate.xls’ and contains the following columns (variables):
Variable Name Description
ID House Identity number
Price Selling Price of the house (in 000’s)
Bedrooms Number of bedrooms
Size House Size (m2
)
Pool 0=House without a Pool
1=House with a Pool
Distance Distance from city centre (km)
Suburb Suburb number
Garage 0=House without a Garage
1=House with a Garage
Random Sample:
Before you begin your analysis, you are required to take a random sample of size 110 from the 170
cases in the file. Use the file Random_Sample_Generator-2.xls to do this. Answers to the questions
below are to be based on your sample of 110 cases. Make sure to keep a safe copy of the sample
you use since you cannot use Random_Sample_Generator-2.xls to reproduce it. Provide a printout
of the data in your sample, with ID numbers in ascending order.
Part 1: Initial Data Analysis
1. Variable List
a. Using the variables listed in the table above, state for each variable whether it is
qualitative or quantitative.
b. If it is qualitative, state whether it is nominal or ordinal, and if it is quantitative, state
whether it is discrete or continuous.
2. Histogram
a. Create a histogram showing the distribution of selling price of the house.
b. Comment upon the shape of the distribution: is it symmetric? If it is not, is it positively or
negatively skewed?
c. Are there any outliers present? If so, are they of particular interest?
d. State which central measure would be best to use to describe the centre of this distribution,
and the reason(s) why

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