Question
A rental agency conducts a study of sales of homes in a city of England. The table below shows the number of homes sold in
A rental agency conducts a study of sales of homes in a city of England. The table below shows the number of homes sold in a year, classified by price range and location. Zones 1 and 2 are suburban areas while zones 3 and 4 are central areas. Price range Location Total Zone 1 Zone 2 Zone 3 Zone 4 > 200, 000 8 18 11 18 55 200, 000 6 48 53 52 159 Total 14 66 64 70 214 Table 1.1 Number of homes sold in a year classified by price and and urban zone.
Price range | Location | Total | |||
Zone 1 | Zone 2 | Zone 3 | Zone 4 | ||
>200, 000 | 8 | 18 | 11 | 18 | 55 |
> 200, 000 | 6 | 48 | 53 | 52 | 159 |
Total | 14 | 66 | 64 | 70 | 214 |
i) Calculate G2 of
(a) full table
(b) partial table of first two columns
(c) partial table of last two columns
(d) partial table of last 3 columns
ii) Is there association between location and price range? Justify your answer.
iii) Between the suburban zones, is there association between location and price range? Justify your answer.
iv) Between the central areas, is there association between location and price range? Justify your answer.
v)Partition the likelihood ratio test statistics for the hypothesis of no association between the two categorical variables to explain your findings in part ii).
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