HowBig Is the Difference in Homes For Sale? The dataset HomesForSale has data on houses available for sale in three Mid-Atlantic states (NY, NJ, and PA) as well as California (CA). In Exercise C.63 we looked at the proportion of homes for sale that were larger than the national average of 2700 SqFt. We found 16 large houses out of 90 in the Mid-Atlantic states and 7 large houses out of 30 in California.

(a) Find a point estimate for the difference in proportions, p_M − p_C.

(b) Find a 90% confidence interval for the difference in proportions, p_M − p_C.

(c) Based on the interval in part (b), is there evidence of a difference in the proportion of large houses between the two locations?

Exercise C.63

The dataset HomesForSale has data on houses available for sale in three Mid- Atlantic states (NY, NJ, and PA) and California (CA). We are interested in the proportion of Mid- Atlantic houses that are larger than the mean US household size, which is approximately 2700 square feet. In the sample of 90 Mid-Atlantic homes for sale in HomesForSale, we see that 16 are larger then 2700 sqft.