Question: This activity meets the course outcome to select and apply the statistical test or tests that are most appropriate to analyze a data set.

As with all the previous activities, and the future activities, your responses to this activity must be complete and reasonable. An incomplete response would be one that does not answer all 5 parts or the computations for a part or parts are not completed. An example of an unreasonable response would be one in which the critical value(s) you state in part c do not correspond to your answers for parts a and b.

Although you could conduct the following test for your state's trimmed price data, it would involve deleting the outliers from your list of data in column A, and then reconstructing the frequency distribution in Part 1 of the spreadsheet so that you have enough classes that have a frequency of 5 or greater so that when you combine the expected frequencies in Part 10 of your spreadsheet, that you will have at least 1 degree of freedom when finding the appropriate critical value. Note for the final exam, although there is at least one question regarding the Goodness-of-Fit test, there are no questions regarding the Test of Normality using the Goodness-of-Fit test. However parts a, c, d, and e do cover the general Goodness-of-Fit testing procedure and completing those parts of this activity (plus the first part of part b) should be beneficial to your overall understanding of a goodness-of-fit test. Thus, for all those reasons, I would like you to answer all five parts of this activity using the information provided for Idaho.

We will test the claim that the advertised selling prices of all (reasonably priced) homes for sale in Idaho, as listed on forsalebyowner.com, are normally distributed.

The hypotheses are:

H _o : this variable is normally distributed

H ₁ : this variable is not normally distributed

where the 'variable' is the advertised selling prices of (reasonably priced) homes for sale in Idaho, as listed on forsalebyowner.com

Provide an appropriate response to each of the following.

1. Which distribution should be used for this hypotheses test? The binomial, z, t, chi-square, or F?
2. Here are the observed frequencies and the expected frequencies from Idaho's adjusted data.

   freq., O	freq., E
   6	4.067296
   3	5.186567
   8	7.029082
   6	6.777664
   5	4.649633
   2	2.269119
   0	0.787571
   1	0.233068

   31 31
   To determine the number of degrees of freedom, we need to combine any categories (that is, classes) that have an expected frequency that is less than 5 with other classes so that all classes will have an expected frequency of 5 or more. After having done that, how many degrees of freedom will be used for this test of hypotheses? Note that ordinarily the df = # of categories – 1, but for the test of normality the df = # of resulting classes – 3.
3. Based upon your answers to parts a and b above, state the critical value(s) for this test using a 10% level of significance.
4. Which of the following test statistic formulas should be used for this test?
    The one in the green box on page 413: z = (x̄-√n)
    The one in the green box on page 427: t = (x̄-s√n)
    The one in the box on page 437: z = (p̂-p)/√(pq/n)
    The one in the box on page 447:  ² = [(n-1)s ² ]/ ²
    The one in the box on page 474: z = [(x̄ ₁ - x̄ ₂ )-( _  _ √[( ² ₁ /n ₁ )+ ( ² ₂ /n ₂ )]
    The one in the box on page 484: t = [(x̄ ₁ - x̄ ₂ )-( _  _ √[(s ² ₁ /n ₁ )+ (s ² ₂ /n ₂ )]
    The one in the box on page 496: t = (D _bar - _D )/s _D √n)
    The one in the box on page 514: F = s ² ₁ / s ² ₂
    The one in the box on page 543: t = r√[(n-2)/(1-r ² )]
    The one in the box on page 594: :  ² = [(O-E) ² /E]
    The one above the box on page 634: F = MS _B /MS _w
5. The computed test statistic value for Idaho is 0.231. Can H _o be rejected? Yes or no and why or why not?
   
   

Price: $2.99

Solution: The downloadable solution consists of 3 pages
Deliverable: Word Document