Case Study: Ft. Myers Home Sales Due to a crisis in subprime lending, obtaining a mortgage has become difficult even for people with solid credit. In a report by the Associated Press (August 25, 2007), sales of existing homes fell for a 5th consecutive month, while home prices dropped for a record 12th month in July 2007. Mayan Horowitz, a research analyst for QuantExperts, wishes to study how the mortgage crunch has impacted the once booming market of Florida. He collects data on the sale price (in $1, 000s) of 25 single-family homes in Fort Myers, Florida, in January 2007 and collects another sample in July 2007. For a valid comparison, he samples only three bedroom homes, each with 1,500 square feet or less of space on a lot size of 10, 000 square feet or less.
Excel data are available in Titanium page.
Use the sample information (appropriate descriptive statistics) to address the following aspects. Your report should not exceed one page.
1. Compare the mean and median in each of the two sample periods.
2. Compare the standard deviation and coefficient of variation in each of the two sample periods. Also incorporate quartiles.
3. Discuss significant changes in the housing market in Fort Myers over the 6-month period.