You have read the Case in the attached PDF file. A partial summary of the data is presented below in Table 1. Use the information in the Table below to answer the questions raised by Jack, Jill and Pelo Watar, Specifically,
At first glance, the average price of the houses for Apple Valley School District is higher than the prices for Eastville School District as illustrated by Figure 1. The difference between the mean prices of the two districts is $17,142. However, other factors can affect the high prices in Apple Valley School District such as the age, size, and number of bedrooms. Table 2 shows that the price per square ft in both districts is closer to each other, with a difference of $6.081. The data shows that the assumption that buyer’s prefer the Apple Valley School District has no basis.
The price of the house depends on the age of the house. Table 3 shows that the older houses have lower prices than new houses. Houses at Apple Valley School District are newer than the houses at Eastville School District. The Price per Age of house at Apple Valley is almost $10 as compared to Eastville which only exceeds $7.
Prices of the houses at Apple Valley School District are higher compared to houses at Eastville School district not because of the buyers’ preference to the school but for several reasons. First, the average sizes of the houses in Apple Valley are bigger than Eastville. Second, the houses are newer. Third, there are more bedrooms per house in Apple Valley than in Eastville School