Background
The COVID-19 pandemic with travelling restrictions has dramatical changed the way that
Danes spend their leisure time and holidays. Domestic destinations and especially summer
residential housing has become increasingly popular.
In combination with the very low rate of interest, the demand for summer residential houses
has increased, and the square meter price is today on a higher level than the former peak in
2008. From Spring 2020 to Spring 2021 the price of a summer residential house has increased
by about 13 percent according to Statistics Denmark.
The present exercise focus on the supply of summer residential houses in four different
locations. This is Hvide Sande in Western Jutland with closeness to the Western Sea. This is
an area with many tourists who are renting out their summer residential house to tourists. The
second area is Marielyst an area located on Falster south of Copenhagen. The third area is
Ebeltoft located at the eastern seaside near to Aarhus. The final area is Gilleleje a more
fashionable area located north of Copenhagen. For each area a random sample of 25 cases has
been drawn giving a total of 100 cases.

Provide a descriptive statistical analysis of the price of a summer residential house PRICE.
Include a histogram in the analysis. Define the mean, mode, median and the standard
deviation. Comment on the shape and symmetry of the distribution. Provide an examination
for high outliers.
• Set up and interpret a 95 % confidence interval for the mean
• Set up and interpret a 95 % confidence interval for the standard deviation
Assume that the variable PRICE is normal distributed with mean and standard deviation as
found.
• What is the probability that the price of a randomly selected summer residential house
from the data set is within the range of 2,000,000 DKK and 3,000,000 DKK?
• What is the probability that the price of a randomly selected summer residential house
from the data set is above 5,000,000 DKK?

The price of a summer residential house may differ due to different recreational amenities
among the four different locations. Examine this issue by use of a relevant test. Use the
variable PRICE divided into the four groups given by the variable LOCATION. List the
assumptions of the applied method, set up the hypotheses investigated, and conduct the test.
What is the outcome? If necessary, provide a supplementary analysis, and comment on the
result. Is the statement confirmed?
Problem 3 (10 %)
Closeness to the seaside with a great view is frequently an important feature for a summer
residential house. To examine this statement, divide the variable SEADIST into 2 categories:
first summer residential houses with less than 500 meters to the sea, and second summer
residential houses with 500 meters or more distance to the sea. For these 2 categories use the
variable QUARTILE and divide into the 4 categories given.