Answer Happy

Question 3. [10 marks] [Chapter 5) A legal researcher was interested in the sale prices of houses in the Mt Eden/Epsom region of Auckland during 2013 to help with a dispute. He took a random sample of house sales in that region from February 2013 and recorded the price the house sold for along with the number of days the house was on the market. The data is stored in the file "HouseSalesi.csv" which can be downloaded from Canvas. The data contains 2 variables: Sale Price The price the house sold for (in thousands of dollars) DaysOnMarket The number of days the house was on the market Under 50: sold in less than 50 days 50Plus: sold in 50 or more days Download the VIT Guide for Bootstrapping from Canvas. Use the Guide while working on this question. Run the VIT software and load the file House Salesi.csv into it. Page 2
Question 3 (continued) (a) (1) Generate a bootstrap confidence interval for the median sale price of houses in Mt Eden/Epsom sold during February, 2013. (DO NOT use the variable DaysOnMarket at this point.) Include the output in your assignment answers. [1 Mark) (ii) What is the parameter we are estimating using this bootstrap confidence interval? [1 Mark) (111) Do we know the true value of this parameter? [1 Mark] (iv) Interpret the bootstrap confidence interval. [1 mark] (v) Briefly explain why students doing this assignment will not all get the same bootstrap confidence interval. [1 Mark] (b) (1) Generate a bootstrap confidence interval for the difference between the median sale price of houses in Mt Eden/Epsom sold during February, 2013 that sold in less than 50 days on the market and the median sale price for those that sold in 50 or more days. Include the output in your assignment answers. [1 Mark] (ul) What is the parameter we are estimating using this bootstrap confidence interval? [1 Mark] (iii) Interpret the bootstrap confidence interval. [2 Markos (iv) Based on the bootstrap confidence interval, is it plausible that the median sale price of houses in Mt Eden/Epsom sold during February, 2013 that sold in less than 50 days on the market and the median sale price for those that sold in 50 or more days could be the same? [1 Mark) Briefly justify your answer.