4 contingency table independence test example finger

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Unformatted text preview: ere α is the significance level and, with n rows and m columns, there are (n ­ 1)(m ­ 1) degrees of freedom. 4 Contingency Table (Independence) Test • Example: Finger Lakes Homes Each home sold by Finger Lakes Homes can be classified according to price and to style. Finger Lakes’ manager would like to determine if the price of the home and the style of the home are independent variables. 5 Contingency Table (Independence) Test • Example: Finger Lakes Homes The number of homes sold for each model and price for the past two years is shown below. For convenience, the price of the home is listed as either $99,000 or less or more than $99,000. Price Colonial Log Split­Level A­Frame < $99,000 18 6 19 12 > $99,000 12 14 16 3 6 Contingency Table (Independence) Test Price Colonial Log Split­Level A­Frame Total < $99K 18 6 19 12 55 > $99K 12 14 16 3 45 Total 30 20 35 15 100 7 Contingency Table (Independence) Test •Hypotheses H0: Price of the home is independent of the style of the home that is purchased Ha: Price of the home is not i...
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This note was uploaded on 01/17/2014 for the course ECO 3411 taught by Professor Staff during the Winter '08 term at University of Central Florida.

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