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: $$\begin{array} { l | c | c | c | c | c }
\text { Type of Property } & \text { Condos } & \text { Townhouses } & \text { Homes } & \text { Commercial } & \text { Land } \
\hline \text { Frequency } & 89 & 121 & 78 & 25 & 12
\end{array}$$ The value of the Chi-square test statistic is
A) χ 2 = 5.993
B) χ 2 = 62.538
C) χ 2 = 101.482
D) χ 2 = 77.431
E) χ 2 = 8.101

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: $$\begin{array} { l | c | c | c | c | c } 
\text { Type of Property } & \text { Condos } & \text { Townhouses } & \text { Homes } & \text { Commercial } & \text { Land } \
\hline \text { Frequency } & 89 & 121 & 78 & 25 & 12
\end{array}$$ The value of the Chi-square test statistic is
A) χ 2 = 5.993
B) χ 2 = 62.538
C) χ 2 = 101.482
D) χ 2 = 77.431
E) χ 2 = 8.101

Quizplus · Accepted Answer

The Chi-square test statistic is calculated by comparing the observed frequencies with the expected frequencies based on historical percentages. The value of 62.538 is the correct calculation for this comparison.

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