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) χ²-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) the Wilcoxon Rank Sum Test, using the test statistic Z

Question

Quizplus · Accepted Answer

The Wilcoxon Rank Sum Test, also known as the Mann-Whitney U test, is a nonparametric test used to compare two independent samples. It is appropriate for testing the difference between two distributions that are not normally distributed or have unequal variances. In this scenario, the goal is to compare the distribution of sale-to-appraised ratios from homes in 2 neighborhoods, which may not be normally distributed. Therefore, the Wilcoxon Rank Sum Test would be the best choice to analyze the data.

A Local Real Estate Appraiser Analyzed the Sales Prices of Homes