A real estate agency, located in a metropolitan area in the northeastern U.S., k

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 table below. What is the standardized residual associated with Townhouses? (Round to two decimal places.)

Explanation / Answer

using calculator

standardized residual is   -0.05

The standardized residual for a cell in a chi-square table is a version of the standard normal deviate, z, calculated asQ

In the special case of df=1, the calculation of the standardized residual incorporates a correction for continuity:Q

The resulting value of z is then given a positive sign if observed>expected and a negative sign if observed<expected.

The chi-square value that results from a chi-square analysis is equal to the sum of the the squares of the standardized residuals.

Assuming the null hypothesis to be true, and providing that the expected value for a cell is at least 5, values of the standardized residual belong to a normally distributed sampling distribution with a mean of zero and a standard deviation of ±1.0.

xxx z = observed — expected/sqrt[expected]

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.