Results of rent prices from San Francisco and Chicago from a zillow.com search in December 2018. The sample size for each city is 40 units.

1. The Big Rent Project
Chicago vs. San Francisco Rent Prices
December 2018
Ulysses Garcia

2. Thesis and Research Question
I am making the claim that rent prices will be higher in San Francisco than in Chicago.

3. Data Gathering
-Zillow.com
-monthly rent prices
-1 to 5 bedrooms
-1-3 to 5 bathrooms

4. Appendix Data Summary: histograms + tables

5. Calculations: 95% Confidence Interval
State: I am constructing a 95%
confidence interval that will estimate the
true difference in rent prices.
Plan: I will solve the margin of error and
use it in the formula
Solve:
Part I: Conditions are met (SRS,
Independent, sigma unknown)
Part II:
x1 4343.675
s1 1089.983
n1 40
df1 40-1 = 39
x2 2372.5
s2 1459.3226
n2 40
df2 40-1 = 39
Conclusion: I am 95% confident
that the true mean difference of
rent prices of San Francisco and
Chicago is between 1397 and
2545.

6. Calculations: Hypothesis Test 1-sample
State: I am testing the claim that on
average, rent in SF is more than
$2000
Plan I will use a hypothesis test to test
the claim.
Let μ= average rent price
H0 = μ=2000
HA = μ>2000
Solve:
Pt.I - Conditions are met (SRS, Independent,
sigma unknown)
Pt. II -Test Statistic
T-stat = 13.599021
Pt. III - P-value
Conclude:
Since p= is 0.0001 < α = .05, we
reject the null hypothesis. There is
enough evidence to suggest rent is
on average higher than $2000 in
SF.

7. Calculations: Hypothesis Test 2-sample
State: I am testing the claim that on
average, rent in SF is more than rent in
Chicago
Plan: I will use hypothesis test to test
the claim
Let μ1= average rent in SF
Let μ2= average rent in Chi.
Solve:
Pt.I - Conditions are met (SRS,
Independent, sigma unknown)
Pt. II -Test Statistic
x1 4343.675
s1 1089.983
n1 40
df1 40-1 = 39
x2 2372.5
s2 1459.3226
n2 40
df2 40-1 = 39
Pt. III- p-value = 0.0001
Conclusion: Since p= is 0.0001 < α
= .05, we reject the null hypothesis.
There is enough evidence to suggest
rent is higher in SF than in Chicago.

8. Data Analysis and Conclusion
-Data may be biased because of the algorithms favoring newer postings versus old ones
-Further bias because postings showed multiple rooms by building; skipped over some to diversify listings
-Rent is higher in San francisco than Chicago
-More than double the rent in San Francisco than Chicago