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DiscussionQuestion5.docxDiscussion Question 5 - CLO 9, CLO 11
You have learned about nonparametric methods and models, now please answer the following questions in detail by applying the knowledge that you have gained from readings and lectures. It is important to include hypothetical examples whenever applicable. Provide a hypothetical example for each of the questions.
1. Explain the objective of nonparametric sign test on the median of a population and the underlying assumptions. Explain formulation of the hypothesis, the test statistic, the rationale for rejecting the null, the criterion for choosing the critical point(s), possible test outcomes, and the criterion for evaluating the p value. Include both nondirectional and directional hypotheses.
1. Describe the objective of non-parametric Wilcoxon paired samples signed rank test in comparing the median of a population with the median of another population. State the underlying assumptions. Explain formulation of the hypothesis, the test statistic, the rationale for rejecting the null, the criterion for choosing the critical point(s), possible test outcomes, and the criterion for evaluating the p value. Include both nondirectional and directional hypotheses.
Activity 7 – CLO 9, CLO 11
According to the National Association of Realtors website (https://www.nar.realtor/sites/default/files/documents/metro-home-prices-q3-2017-single-family-2017-11-02.pdf), the national median sales price for single-family homes was $254,000 in 2018. Assume that the following data were obtained from samples of recent sales of single-family homes in St. Louis and Denver.
Table 10
Samples of Recent Sales of Single-family Homes in St. Louis and Denver.
|
Metropolitan area |
Less than $254,000 |
Equal to $254,000 |
Greater than $254,000 |
|
St. Louis |
32 |
2 |
18 |
|
Denver |
13 |
1 |
27 |
Use the sample data provided in the Table 10 to answer the following questions:
1. Test the hypothesis to determine if the median sales price in St. Louis is lower than the national median of $254,000. In your answer include justification for choice of the type of the test.
1. Test the hypothesis to determine if the median sales price in Denver is higher than the national median of $254,000. In your answer include justification for choice of the type of the test.
Use ɑ = .05 in all tests.
