Research 341

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Real Estate Research Process RES 341 / Research and Evaluation 1 March 28, 2011 Professor Real Estate Research Process Introduction Every individual whether they are aware of it or not, base their decision-making on some form of statistical data. Simple everyday decisions are made through rationalizing a problem or opportunity, forming a hypothesis, analyzing information, and determining a decision based on the gathered information. For the purpose of practicality, Team A has chosen real estate market data gathered from the website for the Statistical Techniques in Business and Economics (2008) textbook to formulate and define a chosen problem, attempt to delineate the purpose of the research into the variables that affect…show more content…
In the case of the real estate data, the variables are the price, size, and the number of bedrooms in a residence. These variables have physical measurements that can be easily verified. Measurement Scale for Each Variable Accordingly, to test the hypothesis, the variables that will be analyzed will be the selling price of the house, the square-footage size of the house, and the number of bedrooms of the house. These are the intervals encompassed in Team A’s hypothesis. However, Team A will also measure other variables connected to outcomes not stated in the hypothesis, such location (for instance distance and time from house to center of town) and desirable amenities. To test the above-mentioned variables Team A will need to select specific measurement scales for them. The four types of measurement scales are nominal, ordinal, interval, and ratio. The depth of sophistication increases as one moves from the nominal scale to the ratio scale. In other words, the ratio and the interval scales offer more detailed information on variables than do the ordinal and the nominal scales. That is to say, as one moves from the nominal scale to the ratio scale, one moves from the general to the more specific, and the more specific information a scale yields, the more powerful it is. The more powerful scales, provide the possibility of performing in-depth, meaningful analysis so that more
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