Proportion of property condition
The data on the sample of owners has only two possible outcomes. These outcomes are either occupied or not occupied. At the time of sale of houses the current person residing in the house is likely to influence the amount of money the price at which a house is sold. The person living in the real estate (house) affects it daily i.e. with continued use the property loses value due to wear and tear. Whether a person lives in the house or it is empty is likely to influence the condition of the house. The table below shows the proportions of different house conditions according to whether the owner lives in them or not.
| Property condition | Lives in the house | Does not live in the house. | Totals |
| Very poor | 60% | 40% | 50 |
| poor | 50% | 50% | 68 |
| Average | 47% | 53% | 66 |
| Good | 44% | 56% | 52 |
| Very Good | 51% | 49% | 57 |
The values of the total number of properties in each classification of the house condition are randomly distributed with the highest number of houses poorly maintained. From the above table, the relationship between the two variables is either weak or non-existent.
Occupancy of a house can also be classified according to whether the owner lives overseas or currently occupies the house. Owners who live overseas are likely to have different levels of maintenance of property especially considering the security factor. Houses of overseas owners can be targeted for vandalism and destruction when they are away. To test for the difference in proportions of the condition based on citizenship. The table below shows the proportion of the conditions of the houses based on whether the owner is overseas or currently resides in the house.
| Property condition | Purchased by an Australian citizen | Occupied by owners. | Totals |
| Very poor | 86% | 14% | 50 |
| poor | 84% | 16% | 68 |
| Average | 74% | 26% | 66 |
| Good | 84% | 16% | 52 |
| Very Good | 84% | 16% | 57 |
The majority of the houses in this sample are owned by Australian citizens. From the table above there exists a relationship between the variable on whether the property is owned by an Australian or occupied by the owner and the variable on the condition of the property.
Bivariate relationships
Social amenities are important in the sale of a property. To test for the relationship between the price that a property fetches and the distance to the nearest shopping center, a correlation test can be applied. The table below shows the correlation and p-value of the correlation test between the price of property and distance to the nearest shopping center
| Internal size | p-value | |
| Price sold | Correlation: 0.06 | 0.913 |
From the table above, there exists a positive relationship between the price of a house and distance to the nearest shopping center. This is supported by the p-value of correlation which is greater than 0.05. The relationship is non-linear.
The size of the property is also likely to influence how much buyers are likely to pay for it. To test for the presence of this relationship and its nature, a correlation test can be used on the two variables.
| Internal size | p-value | |
| Price sold | Correlation: 0.636 | 0.000 |
From the table above, there exists a positive relationship between the size of the property and the price is likely to fetch. The relationship is linear.
People earning different wages are likely to have different abilities to purchase a property. To test for the existence of this relationship a correlation test is carried out on the variables.
| Income | p-value | |
| Price sold | Correlation: 0.775 | 0.000 |
There exists a positive linear relationship between the price at which a property is sold and the income of the person purchasing the property.
Reporting and analysis.
Whether a person lives in the house or does not live in the house does not affect the condition of the property. However, whether the person owning the house is Australian or overseas affects the condition of the property. The internal size, distance to nearest shopping center, and household income all have some impact on the price a house is sold at.
Conclusion.
Buying houses from Australian citizens is risky. Before the purchase or recommendation of a house to a buyer by the company, it is important to establish the physical location of the house and the size of the house. The company should also consider the income of the targeted or likely buyer. These factors have different influence on the potential sale of a house.