Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Markets And Institutions

Authors: Jeff Madura

9th Edition

1439038848, 978-1439038840

More Books

Students also viewed these Finance questions