• The analyst result 

Problem statement 1 : Does the age of the homes affect the home sale price?

Hypothesis 1 :  Influence of homes built after the year 2000 on the sale price of the house

T-Test :

• p = 1.11880726028853E-57

• total sample size = 1460

• mean difference = -83783.79763

• standard error of difference = 4654.320832

• margin of error = 9141.746609

• Confidence Interval diff lower limit = -92925.54424

• Confidence Interval diff upper limit = -74642.05102

Result :  The p-value is less than the significance level of 0.05 So we reject the null hypothesis

• So, there is evidence of a statistically significant difference in the average sales prices for houses that built before the year 2000 and after.

• House built after the year 2000 sell at a higher price. 

• With 95% confidence, old house (house that built before the year 2000) sell between $74,642 and $92,925 lass than new house(houses that built after the year 2000)

Problem statement 2 : Does the living space size affect the home sale price?

Hypothesis 2 :  Influence of living space more than 2000 sq. feet on the sale price of the house

H0:  Homes built after the year 2000 has no effect on the sale price

Ha:  Homes built after the year 2000 has an effect on the sale price

T-Test :

• p = 1.91345339591425E-38

• total sample size = 1460

• mean difference = -118309.9833

• standard error of difference = 7545.81347

• margin of error = 14865.757

• Confidence Interval diff lower limit = -133175.7403

• Confidence Interval diff upper limit = -103444.2263

Result :  The p-value is less than the significance level of 0.05 So we reject the null hypothesis

• So, there is evidence of a statistically significant difference in the average sales prices for houses that have living area above the ground less than 2000 sq. feet and more than 2000 sq. feet

• Home that have more than 2000 sq. feet living space above the ground sell at a higher price. 

• With 95% confidence, home with less 2000 sq. feet living space sell between $103,444 and $133,175 lass than home with more than 2000 sq. feet living space

Problem statement 3 : Does the overall home quality affect on the home sale price?

Hypothesis 3 :  Influence of overall material and finish quality on the sale price of the home

T-Test :

• p = 5.95356464450778E-69

• total sample size = 1460

• mean difference = -141212.1881

• standard error of difference = 5114.184841

• margin of error = 10086.86876

• Confidence Interval diff lower limit = -151299.0569

• Confidence Interval diff upper limit = -131125.3193

Result :  The p-value is less than the significance level of 0.05 So we reject the null hypothesis

• So, there is evidence of a statistically significant difference in the average sales prices home quality level 5 and home quality level 8.

• Higher home quality level sell at a higher price. 

• With 95% confidence, home quality level 5 sell between $131,125 and $151,299 lass than home quality level 8

Problem statement 4 : Does having a garage affect the home sale price?

Hypothesis 4 :  Influence of having a garage on the sale price of the house

T-Test :

• p = 5.95356464450778E-69

• total sample size = 1460

• mean difference = 82162.22729

• standard error of difference = 4221.685229

• margin of error = 8344.972255

• Confidence Interval diff lower limit = 73817.25503

• Confidence Interval diff upper limit = 90507.19954

Result :  The p-value is less than the significance level of 0.05 So we reject the null hypothesis

• So, there is evidence of a statistically significant difference in the average sales prices for houses with and without a garage.

• Home with a garage sell at a higher price.

• With 95% confidence, house without a garage sell between $73,817 and $90,507 lass than houses with a garage

Problem statement 5 : Does having a fireplace affect the home sale price?

Hypothesis 5 :  H5 Influence of having fireplaces on the sale price of the house

• H0: Having fireplaces has no effect on the sale price

• Ha: Having fireplaces has an effect on the sale price

T-Test :

• p = 5.95356464450778E-69

• total sample size = 1460

• mean difference = 75066.2096

• standard error of difference = 3556.734002

• margin of error = 6978.277125

• Confidence Interval diff lower limit = 68087.93247

• Confidence Interval diff upper limit = 82044.48672

Result :  The p-value is less than the significance level of 0.05 So we reject the null hypothesis

• So, there is evidence of a statistically significant difference in the average sales prices for houses with and without a fireplace.

• Home with fireplace sell at a higher price. 

• With 95% confidence, house without a fireplace sell between $68,087 and $82,044 lass than houses with a fireplace.