A real estate agency, located in a metropolitan area in the northeastern U.S., kept data on the various types of properties purchased in the area. Historically, 15% of
Purchases were for condominiums, 30% were for townhouses, 40% for single family
Homes, 10% for commercial properties and 5% for land. With changing demographics,
The agency wondered if the current distribution matches the historical distribution.
Recent data showed the following: $$\begin{array} { l | c | c | c | c | c }
\text { Type of Property } & \text { Condos } & \text { Townhouses } & \text { Homes } & \text { Commercial } & \text { Land } \
\hline \text { Frequency } & 89 & 121 & 78 & 25 & 12
\end{array}$$ Which Chi-square test is most appropriate for this situation?
A) Goodness of Fit
B) Homogeneity
C) Independence
D) Proportional
E) None of the above.

Question

A real estate agency, located in a metropolitan area in the northeastern U.S., kept data on the various types of properties purchased in the area. Historically, 15% of
Purchases were for condominiums, 30% were for townhouses, 40% for single family
Homes, 10% for commercial properties and 5% for land. With changing demographics,
The agency wondered if the current distribution matches the historical distribution.
Recent data showed the following: $$\begin{array} { l | c | c | c | c | c } 
\text { Type of Property } & \text { Condos } & \text { Townhouses } & \text { Homes } & \text { Commercial } & \text { Land } \
\hline \text { Frequency } & 89 & 121 & 78 & 25 & 12
\end{array}$$ Which Chi-square test is most appropriate for this situation?
A) Goodness of Fit
B) Homogeneity
C) Independence
D) Proportional
E) None of the above.

Quizplus · Accepted Answer

The Goodness of Fit test is used to test whether an observed frequency distribution fits a hypothesized distribution. In this case, the agency wants to test whether the observed frequency distribution of property purchases matches the historical distribution. Therefore, the most appropriate test is the Goodness of Fit test.

A Real Estate Agency, Located in a Metropolitan Area in the Northeastern