Real Estate Sample Hypothesis Testing The question or issue that the buyer wants to address is that property closer to town is more expensive so buyers that purchase property further from the center of town get a more affordable home. The research is necessary so that the buyer will remain within the budget that they have set for themselves. Although the cost of the home is very important, it is also important to factor in other expenditures such as upkeep, repairs and any upgrades that may want to be added. It is a critical move for the buyer to factor in all the expenses incurred in the move.
The buyer may also want to be aware that the property in the center of town as well as the property outside the center of town will have different taxes depending on the township or county they are in. To begin the buying process, the buyer must research the area in which he or she would like to buy property. When purchasing a home, location is everything. As a buyer, one should be aware of the cost of living in the area of choice, as well as expect a higher cost the closer to the center of town you get. It is also important as a buyer to find an area that fits your lifestyle as well as your budget.
Many working families require both parents to travel to a metropolis area for work but feel that the city is not a place to raise a child and that the suburbs may be more suitable. However, they must factor in the extra expenditures that will be spent on the commute. A single buyer on the other hand, may benefit from city living and save some extra money because of things like public transportation rather than spending significantly more money on a car and gas. We will use the five steps of hypothesis testing to address our real estate sample.
The steps are: the claim, the sample, the reasoning, the probability if the claim is true and then the conclusion. First we must state the research problem in terms of a question that identifies the population(s) on interest to the researcher. Since the question we want to address is whether or not the property closer to town is more expensive, then we must make some statements. We must set the parameter so that we will know the size of the population which in this case we will say that all the property sold within the last six months in region two. Next we make a claim.
The real estate agent claims that 90 percent of the homes sold in region two with the last six months, sold for over $250,000. 00. We will call this statement the null hypothesis since we have to prove or disprove this statement. Our goal is to accept or reject this statement. If we reject this statement then we will be rejecting the null hypothesis and we will have to accept the alternative hypothesis. If we fail to reject the null hypothesis we are saying that we have not found sufficient evidence to reject it but we are not saying that we have accepted it.
The second step is to select a level of significance after specifying the hypotheses. We will specify the null and Alternative hypotheses: Ho >= 250,000 Ha < 250,000 Since the Ha uses a less than sign we will conduct a left tail test. Setting the alpha level; this is how confident we want to be. It’s common to set that level at 95% not to make a type I error. Type I error: Rejecting a true null hypothesis Type II error: Failing to reject a false null hypothesis Our third step is to identify the test statistic.
When we take any sample, we can see that the sample size is sufficiently large so we can assume normality and then use z statistic test. Next in step Four, we will state the decision Rule. The rule is to reject the null hypothesis if the calculated value of Z is greater than the critical value. Step Five: Take a sample and arrive at a decision. In this case when we apply the rule after calculating the value of z based on the sample of homes purchased in region two within the last six months. We would reject the null hypothesis in this case.
Purchasing a home in the city or in suburbia there are several factors that have to be taken into consideration before making a decision. Location is an intricate detail, and a number one deciding factor. There are rewards and disadvantages to both, with people loving them and hating it at the same time. There are ample of pluses to life in the city; and living in the outer edge or even just past the city limits has an amount of upsides too. For example with the city of Atlanta it is a happy median. From dining, shopping, and entertainment these things are at the tips of your fingers and are readily available when living in the city.
If your employment in within the city of Atlanta and plans are to live in the city, this will allow an individual to save time and finances by walking or even biking to their job. Also when purchasing a home in the city of Atlanta, there are an abundance of things to keep you occupied during the day as well as at night. Taking advantage of the beautiful parks from Centennial to Piedmont is a plus for living in the city and the public transportation is essential when hurriedly moving through the north, south, east, and west of the city into suburbia.
The negative or the downside to living in the city of Atlanta or even most metropolitan cities is that the homes for purchase are likely not to be the same as the houses that most people foresee and imagine. There are more condominiums, townhomes and flats as suppose to houses. They are generally small and pricier per square footage. There is the typical crime for muggers to car-jackers, looking for parking, and loud noise. Having a nice size place or even a venue for your children to play is a challenge. There are no yards, and playing in the public parks may not be feasible for parents.
Atlanta is becoming more and more in many big cities are often congested and overloaded with students. Commonly, if you are living alone or it is just you and your significant other, living in the city limits can be grand, but if you have a family unit or are bearing in mind having one, you might want to mull over purchasing a home in the suburbs. Purchasing a home is the suburbs allow you to have a plethora of space and front and backyards to move around in. According to eHow, Inc. (199-2010),” homes for the same price are often smaller in the city than the suburbs.
New home builders often build many homes at once in the suburbs making the prices cheaper” (para. 1). It is a common for the neighborhood environment to more peaceful and serene. This will allow homeowners to get acquainted and trustworthy of the neighborhood, the surroundings, and the neighbors. There is typically shopping plazas and parks close by for families especially children to enjoy. The schools in the neighborhood community are regularly lesser with a better student to teacher ratio and less aggression and violent behavior as a whole.
While crime is usually lower in suburbia, the noise level is lower too. In conclusion carefully reflect about each location and thinking about the pros and cons of each in order to making a decision about purchasing a home and what is right for you as well as your family. Nevertheless, there are negative aspects to purchasing a home and living in the suburbs. If your place of employment is in the city commuting will become a challenge. The parking is not plentiful, and if there isn’t a parking lot for your job then paying for parking on a weekly basis can cause a strain.
While homes in the suburbs are bigger than those in the city, the expenditure from living in the suburbs can equal out the same as living in the city. Giving deep thought about is the first thing that needs to take place when it comes to making a decision on purchasing a home in the suburbs or the city. References How to Decide Whether to Buy a House in the City or the Suburbs: By, Kerry Fletcher, eHow Member. http://www. ehow. com/how_4677535_whether-buy-house-city-suburbs. html