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(Solved) PEOPLE BOXES, INC. - APARTMENT COMPLEX CONSORTIUM PLANNING EXPANSION BASED ON DEMOGRAPHIC CHANGES - BRIEF People Boxes, Inc. is a consortium of real...

I need help in a Business Stats project. I am ok with understanding the data, however, I am having a lot of trouble with F-tests for joint significance, proportions, and residual plots. I am doing part 5, Attachment #1 is the instructions and attachment #2 is the data. Please follow the steps and refer to the data. If anyone could help me with this project I'd greatly appreciate it! Our professor didn't tell us anything else besides post these instructions online and we're all having a really hard time. This project is due soon, so help would be most appreciated as soon as possible!! :) thanks!!!

PEOPLE BOXES, INC.

- APARTMENT COMPLEX CONSORTIUM PLANNING

EXPANSION BASED ON DEMOGRAPHIC CHANGES

- BRIEF

People Boxes, Inc. is a consortium of real estate owners who seek out

growing real estate demand among young, affluent, highly-educated

workers entering the workforce or relocating to new cities. They

specialize in condominium-style new construction, saving on costs by

reusing blueprints in different cities and working with national

contracting firms. Their revenue growth depends on identifying new

markets to expand into, filling a niche in high-demand, high-income

cities.

They have collected data on demographics and income in a number of

metropolitan statistical areas (MSAs) in the United States and would like

assistance in analyzing the data to provide some background

information and some conclusions on the underlying relationships of

income and age, education levels, and rental prevalence, as well as the

determinants and effects of the supply of housing stock. 1. Youth

- Are Americaâ€™s â€œyoungâ€ cities poorer than the median US

income? For this, define â€œyoungâ€ as â€œbetween 14 and 24â€, and

find the proportion of each MSA that is young. Then split the

data into 2 groups. Test to see if the average median

household income in the youngest MSAs is lower than the

median of median household incomes.

- What is the mean of median HH incomes for the older half of

cities? Come up with a confidence interval estimate of the

population mean.

- Do Americaâ€™s â€œyoungâ€ cities have more rental properties than

the average US city? Find the average number of rental units - for all US MSAs and then test to see if the average number of

rental units of the â€œyoungâ€ cities is lower than the overall US

city average.

Will our tenants need dedicated high-speed internet access?

How many people work from home in â€œyoungâ€ cities? Find an

interval estimate for the average number of people who

work from home.

Does the number of people who work from home in â€œyoungâ€

cities differ from the national average? Test to find out.

Draw any conclusions and make any recommendations youâ€™d

like to offer your client. 2. Retirement

- Does income vary with retirement? For this, define â€œretireesâ€

as â€œpeople age 65 and upâ€, and find the proportion of each

city that is retirees. Then split the data into 2 groups. Test to

see if thereâ€™s a difference in household income between the

MSAs with the most and least retirees per capita.

- Is a â€œwork-from-homeâ€ attitude less common in retirement

age cities? Do the proportions of citizens that work from

home vary between â€œold citiesâ€ and other cities. Use the two

groups to test if this proportion is lower in â€œoldâ€ cities than in

other cities.

- Is there more of a vested interest at stake in the real estate

market in â€œoldâ€ cities? Is the proportion of properties that are

owner-occupied greater in â€œoldâ€ cities? Use these two groups

to test for a difference between these proportions.

- Do retirees prefer smaller cities? Test to see if the total

population is lower in â€œoldâ€ cities than in other cities.

- Is household size different in â€œoldâ€ cities? For each city, find

the average household size and then test to see if this differs

across the two groups.

- Draw any conclusions and make any recommendations youâ€™d

like to offer your client. 3. Education

- Are cities with college and graduate school enrollment more

income-diverse or less so? For this, find the proportion of

each city that is currently enrolled in college, graduate, or

professional school. Then split the data into 2 groups

a. Test to see if thereâ€™s a difference in average

household incomes between the MSAs with the most

and least proportions of the population in

postsecondary education.

b. Test to see if thereâ€™s a difference in the variance in

household incomes between the MSAs with the most

and least proportions of the population in

postsecondary education.

- Do cities with college and graduate school enrollment have

more rental property?

a. Test to see if thereâ€™s a difference in the number of

renter-occupied housing units between the MSAs

with the most and least proportions of the population

in postsecondary education.

b. Test to see if thereâ€™s a difference in the variance in

the number of renter-occupied housing units across

cities between the two groups.

- Do cities with college and graduate school enrollment have

more high-earning households? For this, find the proportion

of households in each city that earns $100,000 or more.

a. Test to see if there is a difference in the average

representation of high-earning households between

the MSAs with the most and least proportions of the

population in postsecondary education.

b. Test to see if thereâ€™s a difference in the variance in

high-earning households between the two groups of

cities.

- Draw any conclusions and make any recommendations youâ€™d

like to offer your client.

- 4. Rental Property

- For this, find the proportion of each cityâ€™s housing stock that

is currently renter-occupied.

- Use regression methods to address each of the following

models:

- The percentage of the housing stock that is renter-occupied

depends on

a. the percentage of the population that is young.

b. the percentage of the population that is retirement

age.

c. the percentage of the population that is enrolled in

college or graduate school.

- Which model is better between a, b, and c? What variables

are significant? What is your interpretation?

- Household income depends on

a. the percentage of the housing stock that is renteroccupied.

b. the percentage of the housing stock that is renteroccupied and the housing stock per capita.

c. the percentage of the housing stock that is renteroccupied, the percentage of the population that is

retirement age, and the housing stock per capita.

- Draw any conclusions and make any recommendations youâ€™d

like to offer your client. 5. Some full models

- What are the determinants of household income? To examine

this we will need to create some new variables: Youth: define â€œyoungâ€ as â€œbetween 14 and 24â€, and find

the proportion of each MSA that is young Retirement: For this, define â€œretireesâ€ as â€œpeople age 65

and upâ€, and find the proportion of each city that is

retirees. Education: find the proportion of each city that is

currently enrolled in college, graduate, or professional

school Rental intensity: find the proportion of each cityâ€™s

housing stock that is currently renter-occupied Housing stock per capita: the number of housing units

per person in a city.

Consider two models:

a. a model that posits that income depends on the

retirement age (the best predictor of the above variables)

b. a model that includes youth, retirement, education, rental

intensity, and the per-capita housing stock as

independent variables. Does model a or b perform better? Use an F test

for joint significance of a subset of variables to

see which model should be preferred. Consider the residual plots. Are there any

problems with these regressions? What are your interpretations of the preferred

model?

What are the determinants of the available housing stock per

capita? Consider two models:

a. A model that posits that housing stock per capita

depends on retirement

b. A model that includes youth, retirement, education, and

rental intensity as independent variables. Does model a or b perform better? Use an F test

for joint significance of a subset of variables to

see which model should be preferred. Consider the residual plots. Are there any

problems with these regressions? What are your interpretations of the preferred

model? Draw any conclusions and make any

recommendations youâ€™d like to offer your client. - -

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