MATH 1300 week 6 Assignment 2: Project for Module 6

• MATH1300 Assignment 2: Project for module 6

Student Name

William Penn University

MATH1300

Professor Name

Submission Date

Chi-square analysis

Based on the given data uploaded, change the variable sale price into two categories: above the mean price or not; and change the living area into two categories: above the median living area or not. Using the resulting variables, will you conclude that a larger house corresponds to a higher price?

hypotheses:

The null and the alternative hypotheses are given by

H0: There is no association between the Sale Price and the Living Area.

Ha: There is an association between Sale Price and Living Area 

Data:

Statistics
	sellprice	LIVINGAREA
N	Valid	50	50
	Missing	0	0
Mean	851.700	21.12
Median	760.000	20.00

P-Value:

From the Chi-Square test results, the p-value is:

p=<.001 <0.05, reject H0

Which is lower than 0.05, and confirms the significance of the result.

The data shows an association between sales prices and living areas. The cross-tabulation chart shows that 81.8% per cent of homes sold under the mean price had a living area below the median, while 76.5% per cent of homes sold above the mean price had a living area above the median.

Conclusion:

There is evidence that “Price” and “Living Area” are associated, so we can conclude that variables “Sell Price” and “Living Area” are associated where a greater sale price is associated with a larger living area, and we reject the null hypothesis.