CASE – Gulf Real Estate Properties

Subject: Quantitative Method – I

Division-C

GROUP – 9

MEMBERS:

S.No. Name SAP ID Roll no.

1. ANTARA JASROTIA 80012100724 H149
2. ISHA KHAKHAR 80012100574 H122
3. JAHNVI 80012100818 H192
4. PRASHANT YADAV 80012100583 H126
5. RAHUL AJITH 80012100029 H006
6. SURBHI 80012100410 H091
7. YASH MITRA 80012100721 H146
8. YASHUNANDAN MER 80012100002 H002

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 16th August 2021
Gulf Real Estate Properties
Case Study

a) Case Summary:

➢ The case talks about Gulf Real Estate Properties Inc. It is a real estate firm
located in Southwest Florida which advertises itself as “expert in real estate
market”
➢ The location of condominium is classified by two types as “Gulf View” and “No
Gulf View”. The “Gulf View” is located directly on the Gulf of Mexico and the
“No Gulf view” is located on the bay or a golf course, near but not on the gulf.
➢ Gulf view sample data is 40 and No Gulf view is 18
➢ The objective is to come up with an estimate of the final selling price and
number of days to sell the when the list price for “Gulf view” and “No Gulf
View” condominiums are given
➢ We will be using percentage confidence interval estimation method to find the
sample data mean in relation to the mean of list prices and average days took
to sell each type of condominiums

b) Tools, techniques and formulas used to solve the case:

➢ Descriptive statistics: Measure of location and measure of variability

➢ CONFIDENCE.NORM: formula to calculate confidence
➢ NORM.S.INV: formula to calculate Z value
➢ Interval estimation: Population mean, margin of error
➢ Various excel functions

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 c) Managerial Recommendations

1. To summarise the data of Gulf view condominium, we recommend analysing

descriptive statistics of all the parameters related to the data of gulf view
condominium.

DESCRIPTIVE STATISTICS (GULF VIEW CONDOMINIUMS)

List Price Sale Price Days to Sell

Mean 474.0075 Mean 454.2225 Mean 106

Standard Error 31.19429 Standard Error 30.43973 Standard Error 8.256078
Median 437 Median 417.5 Median 96
Mode 975 Mode 305 Mode 85
Standard Deviation 197.29 Standard Deviation 192.5178 Standard Deviation 52.21602
Sample Variance 38923.36 Sample Variance 37063.09 Sample Variance 2726.513
Kurtosis 1.011329 Kurtosis 1.183621 Kurtosis 2.022026
Skewness 1.095815 Skewness 1.159388 Skewness 1.077642
Range 805.1 Range 810 Range 254
Minimum 169.9 Minimum 165 Minimum 28
Maximum 975 Maximum 975 Maximum 282
Sum 18960.3 Sum 18168.9 Sum 4240
Count 40 Count 40 Count 40
Confidence Confidence Confidence
Level(95.0%) 63.09641 Level(95.0%) 61.57016 Level(95.0%) 16.69949

2. To summarise the data of No Gulf view condominium, we recommend analysing

descriptive statistics of all the parameters related to the data of No Gulf view
condominium.
DESCRIPTIVE STATISTICS (NON- GULF VIEW CONDOMINIUMS)
List Price Sale Price Days to Sell

Mean 212.8056 Mean 203.1889 Mean 135

Standard Error 11.53651 Standard Error 10.34538 Standard Error 17.98402
Median 212.5 Median 203.5 Median 126
Mode 279 Mode 179 Mode #N/A
Standard Deviation 48.94528 Standard Deviation 43.89172 Standard Deviation 76.29972
Sample Variance 2395.641 Sample Variance 1926.483 Sample Variance 5821.647
Kurtosis -0.08524 Kurtosis -0.46407 Kurtosis 2.215301
Skewness 0.543955 Skewness 0.304181 Skewness 1.360547
Range 174 Range 157 Range 290
Minimum 148 Minimum 135.5 Minimum 48
Maximum 322 Maximum 292.5 Maximum 338
Sum 3830.5 Sum 3657.4 Sum 2430
Count 18 Count 18 Count 18
Confidence Confidence Confidence
Level(95.0%) 24.33992 Level(95.0%) 21.82684 Level(95.0%) 37.94296

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3. The summary results:

a. Mean –The gulf view condominiums have higher average listing price and
sale price as compared to non-gulf view condominiums. The mean of no of
days to sell the non-gulf view condominiums is more than that of that of the
gulf view condominiums. Please find below the mean comparison.

Mean
1200

1000

800

600

400

200

0
List Price Sale Price Days to Sell

Mean Comparison

Types List price Sales price Days to sell

Gulf view 474.0075 454.2225 106

No-gulf view 212.8055 203.1888 135

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b. Mode – The mode in the case of list price and sales price of gulf view
condominium is more than that of the mode in case of no gulf view
condominiums. Also, since there is no repetition of the number of days to sell
in no gulf view condominium, therefore the mode of the same cannot be
computed and compared.

c.

Mode Comparison

Types List price Sales price Days to sell

Gulf view 975 305 85

No Gulf view 279 179 N/A

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d. Median – The median or the mid value in case of gulf view condominium is
more than that of the median in case of non-gulf view condominium which is
similar to the case of mean and mode, but here, in case of number of days to
sell, the median of no gulf view condominium is more than that of gulf view
condominium.

Median
1200

1000

800

600

400

200

0
List Price Sale Price Days to Sell

Median Comparison

Types List price Sales price Days to sell

Gulf view 437 417.5 96

No Gulf view 212.5 203.5 126

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 e. Standard Deviation & Variance –The standard deviation (SD) in case of sales
price of gulf view condominium is higher than that of no gulf view
condominium, and variance in case of sales price of gulf view condominium is
lower than that of the no gulf view condominium. And, in days to sell part the
standard deviation & variance of no gulf view condominium is more than that
of gulf view condominium. The data for Gulf View Condominiums is more
variable as compared to that of Non-Gulf View Condominiums (Large
Standard Deviation and Range).

Standard Deviation Comparison

Types List price Sales price Days to sell
Gulf view 197.2900 192.517 52.216
No Gulf view 48.945 43.819 76.299

Variance Comparison
Types List price Sales price Days to sell
Gulf view 38923.35 37063.09 2726.51
No Gulf view 2395.64 1926.48 5821.64

CONCLUSION-

THE GULF VIEW CONDOMINIUMS ARE HIGHER IN DEMAND AS COMPARED TO NON -GULF
VIEW CONDOMINIUMS BECAUSE OF SHORTER TIME TO SELL IRRESPECTIVE OF HIGHER
PRICES.

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 4. Develop a 95% Confidence Interval estimate of the population mean
sales price and population mean number of days to sell for Gulf view
condominiums. Interpret your results.

INFERENCE-

We can say, that 95% of the time, interval for population mean sales price of Gulf view
condominium is $ 392652.34 minimum and $515792.66 maximum.
We can say, that 95% of the time, interval for population mean days to sell Gulf view
condominium is 89.30 minimum and 122.70 maximum

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 5. Develop a 95% Confidence Interval estimate of the population mean
sales price and population mean number of days to sell for Non Gulf
view condominiums. Interpret your results.

INFERENCE –
Case 1: We can say that 95% of the time, interval for population mean sales price of
No Gulf view condominium is $181362.05 minimum and $225015.73 maximum.
Case 2: We can say that 95% of the time, interval for population mean days to sell No
Gulf view condominium is 97.05 minimum and 172.94 maximum.

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6. Assume the branch manager requested estimates of the mean selling
price of Gulf view condominiums with the margin error of $ 40,000 and
the mean selling price of No gulf view condominiums with a margin error
of $ 15000. Using 95% confidence, how large should the sample size be?

Case 1 - There has to be a sample size of 89 for Gulf View Condominiums, in order to
obtain the estimates of mean selling price, with a margin of error of 40,000.
Case 2 - There has to be a sample size of 33 for No Gulf View Condominiums, in order to
obtain the estimates of mean selling price, with a margin of error of 15,000.

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 7. Gulf Real estate properties just signed contracts for two new listings: a
Gulf view condominium with a list price of $589000 and a No Gulf view
condominiums with the list price of $ 285000. What is your estimate of
the final selling price and a number of days required to sell each of these
units?

A. FINAL SELLING PRICE AND NUMBER OF DAYS TO SELL FOR GULF VIEW
CONDOMINIUMS:-

AS PER THE DESCRIPTIVE STATISTICS WE HAVE MEAN LIST PRICE AS 474.0075 AND MEAN
SELLING PRICE AS 454.2225

Percentage difference between List price and Sale price: (LP-SP/LP)*100

(474.0075 – 454.2225/474.0075)*100 = 4.174%

THERFORE GULF VIEW CONDOMINIUMS SELLS ON AVERAGE 4.2% BELOW ITS LIST PRICE.

NEW LIST PRICE = 589,000

SO NEW SELLING PRICE = (589-SP/589)*100 = 4.174 , NEW SP =$ 564.414 OR $ 564414

THE MEAN NUMBER OF DAYS TO SELL IS 106 DAYS.

B. FINAL SELLING PRICE AND NUMBER OF DAYS TO SELL FOR NON- GULF VIEW
CONDOMINIUMS:-

AS PER THE DESCRIPTIVE STATISTICS WE HAVE MEAN LIST PRICE AS 212.8056 AND MEAN
SELLING PRICE AS 203.1889.

Percentage difference between List price and Sale price

(212.8056-203.1889/212.8056)*100 = 4.519%

THERFORE NON-GULF VIEW CONDOMINIUMS SELLS ON AVERAGE 4.519% BELOW ITS

LIST PRICE.

NEW LIST PRICE = $285000

NEW SELLING PRICE = (285-SP/285)*100= 4.519 , NEW SP = $272.120 OR $272120

THE MEAN NUMBER OF DAYS TO SELL IS 135 DAYS.

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Contribution:

➢ Firstly, all the team members of the group solved the case individually and
noted the key points of the case as per individual’s understanding and
learning.
➢ Secondly, we proceeded with discussing one another’s doubts and
concerns as a team.
➢ We then exchanged our individual findings and learnings with the group.
➢ Next, we divided the task of accumulating all the discussions in a formal
report and excel among the team members.
➢ Each of them contributed in completing the task. We then had another
final discussion to review the work and made the necessary final touch
ups.

Preparation of the managerial report and presentation of the case:

• Antara Jasrotia
• Isha Khakhar
• Jahnvi
• Yashunandan Mer

Learning Outcomes:
➢ Excel functions:
• CONFIDENCE.NORM – formula to calculate margin of error
• NORM.S.INV – formula to calculate Z value
• Descriptive analysis tool
➢ Quantitative method concepts:
• Interval estimate
• Confidence level (margin of error)
• Degree of Freedom
➢ Documentation and Report creation:
• Consolidating excel solutions into managerial reports
• Creation of detailed summary report
• Making valid inferences from the calculations to cater the
problem
➢ Interpersonal:
• Improved on interpersonal skills like working effectively as a
team, time-management, efficient coordination and peer
learning

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