Business information system—assessing the value of information

Assessing the Value of Information

Recently Santa Fe, New Mexico, was named one of the safest places to live in the United States. Since then housing development projects have been springing up all around Santa Fe. Six housing development projects are currently dominating the local market—Pinon Pine, Rancho Hondo, Creek Side, Vista Del Monte, Forest View, and Santa Fe South. These six projects each started with 100 homes, have sold all of them, and are currently developing phase two.

As one of the three partners and real estate agents of Affordable Homes Real Estate, it is your responsibility to analyze the information concerning the past 600 home sales and choose which development project to focus on for selling homes in phase two. Because your real estate firm is so small, you and your partners have decided that the firm should focus on selling homes in only one of the development projects.

The New Mexico Real Estate Association has provided you a data file to use that contains information concerning each of the sales for the first 600 homes. It contains the following fields:






The number assigned to a specific home within each project.



A unique number asigned to each of the six housing development projects (see table on next page).



The initial posted asking proce for the home.



The actual price for which the home was sold.



The date the home was listed for sale.


The date on which the final contract closed and the home was sold.



The total square footage for the home. 



The number of bathrooms in the home.



The number of bedrooms in the home.

The following numbers have been assigned to each of the housing development projects:




Pinon Pine


Rancho Hondo


Creek Side


Vista Del Monte


Forest View


Santa Fe South

It is your responsibility to analyze the sales list and determine which housing development project your real estate firm should focus on. Your submission should make a clear designation which project you chose. Your analysis should be from as many angles as possible.

  1. You do not know how many other real estate firms will also be competing for sales in each of the housing development projects.
  2. Phase two for each housing development project will develop homes similar in style, price, and square footage to their respective first phases.
  3. As you consider the information provided to you, think in terms of what information is important and what information is not important. Your process should single out the key factors used in making your decision.

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