Data Management: Chapter 8 Cumulative Exercise

Open e08c1Valuation and save it as e08c1Valuation_LastFirst.

Ensure the Sales Data worksheet is active, then use the FREQUENCY function to calculate the frequency distribution of the square footage of homes located in column D. Place your results in the range H4:H11.

Enter a function in cell J4 to calculate the standard deviation of the current home values (column E).

Enter a function in cell J7 to calculate the variance of the current home values (column E).

Enter a function in cell J10 to calculate the covariance between square footage (column C) and the current home values (column E).

Enter a function in cell J13 to calculate the correlation between square footage (column C) and the current home values (column E).

Apply Accounting Number Format to cell J4.

Insert a Histogram and Use the Analysis ToolPak

You will use the Analysis ToolPak to create a histogram to visualize current home values. You want to use the Analysis ToolPak to complete a single factor ANOVA on sales data between subdivisions based on square footage.

Ensure the Analysis ToolPak add-in is active.

Insert a Pareto chart using the manual insertion method based on the square footage located in column C. Move the chart so the upper-left corner is in cell G15.

Resize the chart so it fills the range G15:J28.

Make the Subdivisions worksheet active.

Use the Analysis ToolPak to perform a single factor ANOVA including labels on the range C3:E46. Place the results starting in cell G4. Resize columns G:M as needed.

Perform Trend Analysis

For your last steps, you will create a forecast sheet to visualize trends in the Gatewood subdivision. You will also add a linear trendline to a scatter plot to visualize the increase in home value based on square footage. Last, you will use the FORECAST.LINEAR function to forecast home valuation of a 4,500-square-foot home.

Create a forecast sheet that depicts the increase in home valuation in the Gatewood subdivision based on square footage. Set the Forecast square footage to 3500, and place the results on a new worksheet named Gatewood Forecast. Resize and reposition the chart to fill the range G2:P22. (On a Mac, the Forecast Sheet feature is not available.)

Make the Forecast worksheet active and create a scatter plot chart that places the Square Footage on the x-axis and the Purchase Price on the y-axis. Be sure to add an appropriate chart title.

Add a linear trendline to the chart that also shows the Equation and the R-squared value. Reposition the equation so it is in the upper-left corner of the plot area.

Enter a function in cell E3 to calculate the Intercept of the linear trendline created in the prior step.

Enter a function in cell F3 to calculate the Slope of the linear trendline.

Enter a function in cell G3 to calculate the RSQ of the linear trendline.

Enter a function in cell H3 to calculate the Standard Error. Format the results as Currency.

Use the FORECAST.LINEAR function in cell F6 to forecast an appropriate value of a 4,500-square-foot home based on the historical data in columns B:C. Format the results as Currency.

Complete your analysis by adding formulas in the range G6:H6 to calculate the high and low thresholds of the forecast.

Save and close the workbook. Exit Excel. Based on your instructor’s directions, submit: e08c1Valuation_LastFirst