• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Application of number: level 3 - Is House Buying a Good Idea or Not?

Extracts from this document...

Introduction

Application of number: level 3

IS House Buying – a Good Idea or Not?

A table to show the data collated for the samples for other houses and first-time buyers’ houses (in ascending order):

Other houses

Price (£)

First-time buyers' houses

Price (£)

1

32,500

1

18,500

2

35,000

2

29,950

3

37,950

3

37,500

4

39,950

4

39,500

5

44,950

5

39,950

6

46,250

6

39,950

7

54,950

7

39,950

8

64,950

8

41,950

9

64,950

9

43,950

10

65,000

10

44,950

11

71,950

11

46,500

12

74,950

12

46,950

13

82,500

13

49,950

14

87,500

14

50,950

15

89,950

15

51,950

16

94,950

16

51,950

17

110,000

17

52,500

18

110,000

18

52,995

19

131,950

19

53,000

20

139,500

20

54,950

21

145,000

21

54,950

22

145,000

22

55,950

23

149,950

23

57,950

24

175,000

24

69,500

25

175,000

25

69,950

26

195,000

26

70,950

27

195,000

27

72,950

28

210,000

28

79,500

29

215,000

29

79,950

30

249,950

30

84,950

The mean of a set of data is the sum of the values divided by the number of values.

        Mean = sum of values / number of values

The range is a measure of spread and the range of a set of data is the difference:

                Greatest value – least value

First-time buyers’ houses:

  • Mean:         Sum of house prices / 30

= £1,584,445 / 30

= £52,815 (to the nearest £)

  • Range:        highest house price – lowest house price

= £84,950 – £18,500

= £66,450 (to the nearest £)

        Other houses:

  • Mean:         Sum of house prices / 30

= £3,334,600 / 30

= £111,153 (to the nearest £)

  • Range:        highest house price – lowest house price

= £249,950 – £32,500

= £217,450 (to the nearest £)

All houses:

  • Mean:         Sum of house prices / 60

= £4,919,045/ 60

= £81,984 (to the nearest £)

  • Range:        highest house price – lowest house price

= £249,950 – £18,500

= £231,450 (to the nearest £)

All of the calculations have been double checked in order to ensure that they are correct. The data in the tables of the samples was arranged in ascending order in order to be able to easily recognise the highest and lowest values required for calculating the range. The calculations for the means are seemingly correct since they are similar to mean values provided by the Internet. It can be quite simply proved that the mean for all houses is correct as:

...read more.

Middle

In order to produce the cumulative frequency graphs (for first-time buyers’ houses, other houses and all houses), a cumulative frequency table needs to be made, organising the house prices in ascending order.

First-time buyers’ houses:

House price (£0000)

Cumulative frequency

Less than      0

0

1

0

2

1

3

2

4

7

5

13

6

23

7

25

8

29

9

30

Other houses:

House price (£)

Cumulative frequency

Less than   0

0

1

0

2

0

3

0

4

4

5

6

6

7

7

10

8

12

9

15

10

16

11

16

12

18

13

18

14

20

15

23

16

23

17

23

18

25

19

25

20

27

21

27

22

29

23

29

24

29

25

30

...read more.

Conclusion

Accuracy of the graphs and charts were ensured by carrying out the following:

  • Using tick marks with lower intervals
  • Adding values above bars (on Excel software) and ensuring that they correspond to the data in each of the sample tables.

According to the data for all houses the average house price in my survey (i.e. £81,984) is lower than the average house price for my region (i.e. £88,700). Evidently this difference is not very considerable.

The difference could be due to the following:

  • Lack of demand as Leicester may have less to offer as a city (e.g. employment, education, leisure and recreation, low crime rates etc.)
  • Inaccuracies in selecting the house prices for the sample, which may be caused by not including enough data or ineffective selective sampling (due to data being selected too randomly).

However the average house price (for all houses) in my survey generally tends

be similar to that of the UK (£81,800).

Generally I think that buying a house in my local area would be a good investment due to the following reasons:

  • Average Leicester house prices being only relatively slightly above the national average.
  • Leicester house prices having the tendency to increase relatively considerably by about 26% within 2 years.

...read more.

This student written piece of work is one of many that can be found in our AS and A Level Probability & Statistics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Probability & Statistics essays

  1. Design an investigation to see if there is a significant relationship between the number ...

    = standard deviation of population two n = number of measurements in each case I will be using Excel, a computer programme, to execute the student t-test. Firstly, the means of each set of data will be calculated by summing up the results from each location separately, then dividing by the number of samples taken in that location.

  2. Study of the height/diameter ratio of limpets inhabiting the middle shore region of exposed ...

    * 3 compasses * Calculator with random # function (or another method to obtain random coordinates) * 3 Clipboards * Pens/Pencils * Waterproof clothing (Wellington boots, Waterproof trousers, and overall) A suggested area to perform this study is the Gower peninsula in South Wales.

  1. Statistics: Survey of Beijing and China during the SARS storm

    57 4,26 217 58 4,27 168 59 4,28 109 60 4,29 225 61 4,30 208 The 31 number I randomly selected are: 3,4,5,7,8,11,14,15,18,20,21,22,25,26,28,29,31,33,36,37,41,44,46,47,50,52,53,54,56,57,58. These numbers I randomly selected will be my sample of these two months. (March and April) We can either get the information from the population (the 61 days)

  2. Data Analysis of American House Price

    4.1 - Overall Distribution of the house price By lLooking at Graph 1 it appears that the overall distribution is symmetrical. This is confirmed by comparing the value of the mean with the median: as the two figures have approximately the same value, it implies that the distribution is roughly symmetrical.

  1. "The lengths of lines are easier to guess than angles. Also, that year 11's ...

    The median can also be found. Estimated length < 4cm < 5cm < 6cm < 7cm < 8cm < 9cm Cumulative Frequency Year 11's 3 15 29 31 31 33 Cumulative Frequency Year 9's 3 12 20 27 This

  2. house prices and sales

    My second hypothesis is: House prices in the South of the country are more expensive than those in the North of the country. I could take another random sample or use the same one. To investigate the North / South divide I will divide my sample into two tables, depending

  1. Development of Quantitative and Qualitative measures of Human Impact on Wimbledon Common.

    Although plants in a dense population become larger with age and as the population decreases due to mortality the law implies that the total plant weight will increase because mean plant weight is increasing faster than density is falling. This phenomenon is known as self-thinning.

  2. How Can Samples Describe Populations?

    from each step in figure 1 has the potential for introducing systematic error or bias. However, the thrust of this essay will be on the step taken to select the final sample. Types of Sampling The aim of the sampling process is to draw a sample that is a true

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work