Create a dot plot for the home prices

Create a dot plot for the home prices

Problem Statement

The attachment shows the data plot of the real estate prices for a medium-sized home (1500 sqft) in a metropolitan city. The numbers are shown in lacs (1,00,000).

How to perform analysis

Step 1: Open Sigma Magic
  1. Click on the Sigma Magic button on the Excel toolbar.
  2. Click on the New button to create a new project.
Step 2: Data Preparation
  1. Open the Realestate.xlsx attachment
  2. Select the data and convert it to table format by clicking on Ctrl-T



Step 3: Add the dot plot template
  1. Click on the Tool Wizard to add the analysis template.
  2. Click on Graph and then Dot Plot.


Step 4: Specify analysis options
 A new Dox Plot worksheet will be added to your workbook, and the following dialog box will be opened. Click on the Setup tab on the right. Accept the default values and specify the analysis options.



Next, click on the Data tab and specify the data. Drag and drop the Table1 Prices to the to the Analysis Variables.



If you need to make changes to the charts, specify the optional settings in the Charts tab.

 Labels:

  • Add a title for the chart.
  • Label the X-axis and Y-axis appropriately.

Appearance:

  • Adjust colors, font sizes, or other visual elements as needed.
  • Enable/disable gridlines or background shading.

Finally, click the Verify tab to ensure all the inputs are okay and shown in a green checkmark.



Step5: Generate analysis results
Click on the OK button to generate analysis results. The following figure shows an example output screen.


How to interpret results·       

The following conclusion can be drawn from this analysis.
  1. Most homes lie between 30-40 lacs, the most prominent range.
  2. Homes priced above 60 lacs are fewer, representing high-end properties.
  3. A few homes are priced at 20–26 lacs, which would target budget buyers.
  4. Mid-range customers dominate the market.
  5. Prices of 20 lacs and 73 lacs are outliers; it means those properties are lying out of range
  6. Additional information
    1. Range of Prices: The prices of medium-sized houses vary between 20 lacs and 73 lacs.
    2. Clusters: There are visible clusters of prices at 30 lacs and 39 lacs, meaning most houses lie in these price ranges. A smaller cluster is observed at 60–63 lacs.
  7. Outliers:
    1. The price at 73 lacs appears to be higher than the rest of the data and could be considered an outlier.
    2. The price at 20 lacs is much lower and could also be an outlier
    3. Distribution: The data seems a bit spread out, with more frequencies in the 30–40 lacs range and fewer homes in the higher price range (60–73 lacs).

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