A real estate broker claims that the median days that one of his listings stays on the market is 45 or less days. To test this, he has collected the following random sample of properties sold showing the days they were on the market prior to selling:
Days
50
30
70
20
30
40
60
80
The broker is unwilling to assume that the population data are normally distributed.
a. What is the correct null and alternative hypothesis to be tested?
b. What statistical test would you recommend be used to test this hypothesis?
c. Conduct the test and indicate what conclusion should be reached if we test at an alpha = .05 level?
Q. 2Under what conditions should a decision maker use a nonparametric statistical procedure?
What will be an ideal response?
Q. 3A survey was recently conducted in which random samples of car owners of Chrysler, GM, and Ford cars were surveyed to determine their satisfaction. Each owner was asked to rate overall satisfaction on a scale of 1 (poor) to 1000 (excellent).
The following data were recorded:
Chrysler GM Ford
650 400 700
700 800 750
500 500 650
800 400 800
900 600 900
750 900 700
If the analysts are not willing to assume that the population ratings are normally distributed and will use the Kruskal-Wallis test to determine if the three companies have different median ratings, what is the appropriate critical value if the test is to be conducted using an alpha = .05 level?
A) = 5.05
B) 2 = 5.99
C) 2 = 24.99
D) = 3.67
Q. 4If we are interested in testing to determine whether the center of three or more populations is equal when the data in the samples are ordinal, what is the appropriate test to conduct?
A) A t-test
B) An ANOVA
C) A Kruskal-Wallis
D) A Wilcoxon Matched-Pairs Sign Rank test
Quick Reply
