• 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. Used Cars - What main factor that affects the price of a second hand ...

    0 11499 21 MEDIUM 1700 49260 5 6999 22 MEDIUM 1700 22070 2 5999 23 MEDIUM 1799 36534 5 6999 24 MEDIUM 1800 18620 2 9199 25 MEDIUM 1800 17200 3 9999 26 MEDIUM 1800 49589 4 5499 27 MEDIUM 1800 4940 1 17399 28 MEDIUM 1800 2920 0 14899

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

    to plot, on separate line graphs, the relative abundance of different components found in quadrats layered on the lower shore and middle shore. I'll provide a key so that the different species are distinguishable on the graphs. This will enable me to consider the competition whilst interpreting my results, and

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

    In systematic sampling there is no indication of precision and no possibility of assessing the significance of its difference from the mean in another area. However systematic sampling is preferred by many workers on the grounds that it is more representative of variations over the area and hence likely to

  2. Case study -Super Savers is wishing to move into the UK Food Retail market.

    On the other hand, the panellists have to have a common idea or consensus understanding of the attribute in question. Obviously, this limits the just-right scale to few simple attributes that are widely understood, such as sweetness and saltiness. Nine-point Hedonic Test The nine-point hedonic test was the second test

  1. Data Analysis of American House Price

    However, there are more factors to take into consideration before buying a house in order to evaluate if it worth the money asked on the market and if it will keep and increase its value. 4. Statistical Analysis: Findings The Findings of the report has been dived into 3 parts: a.

  2. Factors that most affect the prices of second hand cars

    66.24 5 42 51000 2 5 18140 6499 11641 64.17 4 35 49000 2 16 28210 5995 22215 78.75 8 29.5 55000 3 15 8900 4995 3905 43.88 2 36 24000 1 3 8601 3995 4606 53.55 4 44.5 31000 1 4 21586 3795 17791 82.42 6 30 51000 3

  1. The case is about the Monetta Financial Services Company, an investment house.

    The higher percentage change from offering to open day trade price represents that IPO is "hot". Using the statistical data in Exhibit 1, following can be inferred: * The IPOs allocated to directors have a mean 34.2% with a standard deviation (read: risk)

  2. Analyse a set of results and investigate the provided hypothesise.

    Also an angle is a fraction of a circle, but a line can be a fraction of a line than has an unimaginable greatness of length. So baring this in mind, when people estimate the size of the angle

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