MIS770: Kingfisher Bay House and Rental Prices - Data Analysis Assignment

Internal Code: MAS6501

Data Analysis Assignment:

You play the role of Sandy Stedwell who is the Manager of the Research and Analysis section at the Real Estate Institute of Victoria (REIV). Your role includes analyzing a variety of housing data including house prices, affordability, investment returns, rental availability and rental returns. You are often required to report outcomes of your analysis to senior managers at the Institute who have little or no knowledge of data analysis. Of specific interest to the REIV are the increasing house prices in Melbourne and potentially what this will mean for buyers yet to enter the market. A recent analysis, which received publicity in the media, showed that there were more Melbourne suburbs with a median house price of over $1 million, with this trend only set to continue as evidenced from the recent auction and private sales figures. Just recently, you have been working on a pilot survey from the City of Kingfisher Bay concerning house prices, rental costs and returns, as well as other related data. In light of the above, the REIV is very interested to see where the City of Kingfisher Bay, and more specifically its suburbs, is/are positioned when it comes to house prices and affordability. Hannah Zhou, the Director of the Housing Affordability Division at the Real Estate Institute, has written to you regarding the Kingfisher Bay housing survey. Her memo to you is reproduced below Questions: (a) Provide an overall summary of house prices in Kingfisher Bay. (b) The media articles focus on median house prices and not the mean. I have never been able to understand why this is so; surely the “average” is the “average”. Can you provide a straightforward answer for me? (c) Provide an accurate estimate of the average house price for all houses in Kingfisher Bay. (d) Likewise, what is the estimation of the proportion of all houses in Kingfisher Bay that are $1million and more? (e) If you can, please supply me with a brief summary of the condition of houses in Kingfisher Bay. (b) Does there appear to be any differences i. among the suburbs in terms of condition? ii. in house prices by condition in Kingfisher Bay? iii. in the house prices between the suburbs? (c) From your completed analyses so far, can you determine whether suburb or condition has a bigger impact on house prices?