Chi-square analysis
Based on the given information uploaded, trade the variable sale price into 2 categories: above the mean price or not, and trade the living location into 2 categories: above the median living location or not. the usage of the resulting variables, will you finish that a bigger residence corresponds to a higher charge?
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.
MATH 1300 Module 6 Assignment 2 Chi-square analysis
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% of homes sold under the mean price had a living area below the median, while 76.5% of homes sold above the mean price had a living area above the median.
Conclusion
There’s proof that “rate” and “living area” are associated, so we can conclude that variables “sell price” and “dwelling region” are associated, wherein a higher sale rate is associated with a bigger living area. We reject the null hypothesis.