Introduction
Managers write managerial reports to inform their supervisors of their business decisions, departmental progress and future outlook of the market. A managerial report uses data and a standard report format to organize the information (Crosson & Needles, 2010). This managerial will provide a statistical summary on list price, sale price and number of days taken by Gulf Real Estate to sell gulf view and no gulf view properties. It also includes calculation of confidence interval and interpretation of the results. Furthermore, the report will compare results for gulf view condominiums against those of the no gulf view condominiums. Finally, the report will explain how stakeholders in real estate business can use this statistical information to evaluate the market.
Managerial Report Solutions
Summary of the three variables for the Gulf View Properties
Summary of the three variables for the No Gulf View Properties
The mean sale price for gulf view condominiums is higher than the mean sale price of no gulf view condominiums while the mean number of days to sell gulf view condominiums is less in comparison to that of no gulf view condominiums. In addition, the variation in the sale prices of gulf view condominiums is higher than the variation of no gulf view condominiums. The variation in average number of days to sell gulf view condominiums is greater than that of no gulf view condominiums.
Gulf view condominiums are substantially expensive than non gulf view condominiums with a median sales price of 417,000 and 203,000 respectively. However, gulf view condominiums sell at a faster rate with a mean number of days to sell of 106 that non gulf view condominiums which has 135 days. These statistical results can help a real estate agent increase their commission by selling a property faster.
The 95% confidence interval estimate of the population mean sales price and population mean number of days to sell for Gulf View condominiums = sample mean +/- 1.96*(st dev/sqrt(n)) (Crosson & Needles, 2010).
- Sample mean= 454.22, st. deviation=192.517, n = 40.
Sales price = 454.22± 59.662. The confidence interval= 394.56 to 513.88
- Sample mean = 106, standard deviation = 52.22, n = 40
Number of Days of sell= 106 ± 16.18. The confidence interval = 89.8 to 122.2
The 95% confidence interval estimate of the population mean Sales price and population mean number of days to sell for No Gulf View condominiums = sample mean +/- 1.96*(st dev/sqrt(n))
Sample mean= 203.19, standard deviation= 43.9, n = 18.
- Sales price = 203.19 ± 21.83. The interval = 181.36 to 225.02
- Sample mean= 135, standard deviation = 76.3, n = 18
Number of Days to sell= 135 ± 37.94. the interval = 97.06 to 172.94
The optimal sample size for a Gulf View condominium with a margin of error of $40,000 is calculated as E=Z*s/√n (Anderson, Sweeney & Williams, 2012).
Where:
- E = 40000,
- Z = 1.96,
- s = 192.517
n = (Z*s/E) 2 = (1.96*192.517.75/40)2 = 88.99
- The optimal sample size should be 89
- The optimal sample size for a No Gulf View condominium with a margin of error of $15,000 can be calculated as
E=Z*s/√n = 15000 where Z = 1.96, E = 15000, s = 43.9
n = (1.96*43.9/15)2 = 32.9. the optimal sample size is 33.
Conclusion
In conclusion, the statistical summary of the three variables shows that gulf view condominiums are more expensive than no gulf view condominiums. Gulf view condominiums list at a mean price of 474,000 and a median price of 437,000 while no gulf view condominiums have a mean price list of 212,800 and a median price of 212,5000. In addition, gulf view condominiums sell faster with an average number of days to sell of 106 as compared to 135 days of no gulf condominiums. The three variables differ considerably between gulf view properties and no gulf condominiums. Players in the real estate business can use these statistical results understand the trends in the market.
References
Anderson, D.R., Sweeney, D.J., & Williams, T.A. (2012). Essentials of statistics for business and economics. South-Western: Cengage Learning.
Crosson, S. V., & Needles, B. E. (2010). Managerial Accounting. New York: Cengage Learning.