Comparing Value in East Meadow and Farmingdale (Research Paper Sample)

INTERNATIONAL UNIVERSITY
IBM 2203
GROUP ASSIGNMENT
Student Names:
Table of Contents TOC \o "1-3" \h \z \u 1.0: Introduction PAGEREF _Toc37665478 \h 32.0: Objective 1: comparing value in East Meadow and Farmingdale. PAGEREF _Toc37665479 \h 42.1: Descriptive statistics for appraisal value in East Meadow and Farmingdale PAGEREF _Toc37665480 \h 42.2: Difference between mean appraisal in East Meadow and Farmingdale PAGEREF _Toc37665481 \h 53: Objective 2: To find out whether there is an association between architectural style of property and geographical location PAGEREF _Toc37665482 \h 73.1: Graphical presentation of architectural styles PAGEREF _Toc37665483 \h 73.2: Graphical presentation of architectural design in different geographical locations PAGEREF _Toc37665484 \h 83.3: Chi-square test of association between architectural style and geographical location PAGEREF _Toc37665485 \h 94: Objective 3: to find out whether there is a relationship between lot size of property and number of rooms PAGEREF _Toc37665486 \h 104.1: Correlation analysis PAGEREF _Toc37665487 \h 104.2: Linear relationship between lot size and number of rooms PAGEREF _Toc37665488 \h 115: Conclusions PAGEREF _Toc37665489 \h 136: Limitations and suggestions PAGEREF _Toc37665490 \h 137: References PAGEREF _Toc37665491 \h 14
1.0: Introduction
Property management has become a development area in the recent past. It has been seen to evolve over the years with radical changes in its structuring and management. Most property management agents are engaged in residential, commercial, and real estate’s including apartments and detached houses (Lees, 2001).
In management, property manager are able to run business from management of large amount of businesses and apartments. Therefore, creating a need for firms to evaluate most crucial factors that they should ensure are looked into for increased profitability. It has been stipulated, that possible factors could include; the lot size, number of rooms, number of bedrooms, and type of parking and architectural style. However, there has not been a single literature that has looked into the question carefully to help property managers locate their business in areas of business growth (Lees, 2001). In addition, little has been done in assessment of the most critical factors which lay bases to the current study. Therefore, the current study will be undertaken to fulfil the following objectives;
1 To compare the value of property in East Meadow and Farmingdale.
2 To find out whether there is an association between architectural style of property and geographical location.
3 To find out whether there is a relationship between lot size of property and number of rooms.
To achieve the first objective, the analysis will be conducted through descriptive statistics. First histogram for both geographical locations will be presented, after which an independent t-test will be conducted to assess whether there exists any significant difference in value between the two geographical regions.
Objective 2 will be captured through a first simple bar graph which will present the distribution of architectural styles. Then a cluster bar which cross tabulations will be presented to assess the associations between geography and architecture. Finally, a chi-square test will be assessed to assess significant difference in the associations.
To achieve the third objective correlations will be run to assess association between lot size and the number of rooms. Further a regression will be run to assess the effect of the lot size on the number of room an apartment would have.
2.0: Objective 1: comparing value in East Meadow and Farmingdale.
2.1: Descriptive statistics for appraisal value in East Meadow and Farmingdale
Variable

Number of observations

Mean

Standard deviation

Min

Max

East Meadow

59

213.00

37.62

155

310

Farmingdale

50

191.8

30.29

115

305

Looking at the means, it is possible to tell that East Meadow has a higher value compared to Farmingdale. The mean vale for property in East Meadow is $213,000 while the mean vale of property in Farmingdale is $191,800. From the analysis, out of the 300 responses, 59 of properties came from East Meadow, and 50 from Farmingdale. This composed of 19.67% and 50% of the total sample respectively. The minimum value for property in East Meadow is $155,000 and the maximum value is $310,000. On the other hand, the minimum value of property in Farmingdale is $115,000 and the maximum value is $305,000. This is an indication that on average people in East Meadow afford to pay for apartments worth $213,000, while those in Farmingdale afford to pay for apartments worth $191,800.
Making use of a distributional plot, the histogram below shows that the value of property in different regions varies. Looking at the plot, value in East Meadow is highly concentrated at around 150,000-200,000, which the highest frequency of 12 being below $200,000. On the other hand, Farmingdale has most of its values lie between 150,000-200,000, with the highest frequency of 19, being below $200,000 and close to the mean value. This is an indication that most people in East Meadow, prefer paying a value less than the mean of $213,000. On the other hand, people in Farmingdale prefer to pay a price around the mean vale of property in the area. People in East Meadow do not prefer paying for apartment’s worth below $150,000 as they are considered of low quality. This is a similar observation of people in Farmingdale area. The lowest frequency equals 1 for East Meadow which occurs at $155,000, while the lowest for Farmingdale is 1 which occurs at $115,000. This price is not taken by many as is considered a very low price thus associated with low quality apartments. On the other hand East Meadow has a low frequency for property valued above $300,000, with 1 at $310,000. At Farmingdale property worth above $250,000 is not highly chosen with a frequency of 2. This values are seen as extremely expensive for people and thus they are not taken up. They are seen to exceed the average value people in both places can afford. But though it should be noted that even though only a few take the low price apartments and the very high price apartments, the high price one will get the best as they are able to pay the price, and the low people get the low quality as they are not able to pay the average price.
It should be well noted that only a few people are able to afford the high price apartments but they go for them as they are able to pay the price. Though generally, property in East Meadow is highly valued compared to Farmingdale.
2.2: Difference between mean appraisal in East Meadow and Farmingdale
From, the analysis, we have been able to spot that prices in different geographical regions differ. It is however, important to make a hypothetical test to assert, that the value difference is statistical. And thus areas with a higher mean are statistically highly valued compared to those with lower mean. This engaged an independent t-test. As shown in the table below, the mean value of property in East Meadow is $213,010,000, and that in Farmingdale is $191,810,00.
Group Statistics


geographic location

N

Mean

Std. Deviation

Std. Error Mean

apparised value in thusands

East Meadow

59

213.01

37.628

4.899


Farmingdale

50

191.81

30.295

4.284

Hypothesis test
Ho: µE= µF
Ha: µE ≠ µF
ɑ= 0.1, p-value (from test) = 0.002
Decision: reject Ho
The independent sample test as shown below indicate that there is a significant difference in the mean value of apartments in East Meadow and Farmingdale. We are 95% confident that the variance value in the two area are statistically different.
Independent Samples Test


Levene's Test for Equality of Variances

t-test for Equality of Means


F

Sig.

T

df

Sig. (2-tailed)

Mean Difference

Std. Error Difference

95% Confidence Interval of the Difference









Lower

Upper

aApparisedd value in tThousands

Equal variances assumed

5.919

.017

3.200

107

.002

21.201

6.625

8.068

34.333


Equal variances not assumed