A local real estate appraiser analyzed the sales prices of homes in 2 neighborhoods to the corresponding appraised values of the homes. The goal of the analysis was to compare the distribution of sale-to-appraised ratios from homes in the 2 neighborhoods. Random and independent samples were selected from the 2 neighborhoods from last year's homes sales, 8 from each of the 2 neighborhoods. Identify the nonparametric method that would be used to analyze the data.
A) X²-test for the differences among more than two proportions
B) McNemar test for the difference between two proportions
C) the Wilcoxon rank sum test, using the test statistic T₁
D) X²-test for the variance

Question

Quizplus · Accepted Answer

The Wilcoxon rank sum test, also known as the Mann-Whitney U test, is a nonparametric test used to compare the distribution of two independent samples. In this scenario, the goal is to compare the sale-to-appraised ratios from homes in the two neighborhoods, which are likely not normally distributed. Therefore, the Wilcoxon rank sum test is a suitable option to analyze the data. Options A, B, and D are not appropriate for this scenario.

A Local Real Estate Appraiser Analyzed the Sales Prices of Homes