Analyze a Conclusion Using Standardized Residuals A) Condos
B) Townhouses
C) Homes
D) Commercial
E) Land

question 14

Multiple Choice

Analyze a conclusion using standardized residuals.
-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. Based on the data shown below, the null
Hypothesis was rejected and the agency concluded that the current distribution of property
Sales differs from the historical distribution. Based on an examination of the standardized
Residuals, which type of property had the most impact on the test results? $$\begin{array} { l | c | c | c | c | c } \text { Type of Property } & \text { Condos } & \text { Townhouses } & \text { Homes } & \text { Commercial } & \text { Land } \\\hline \text { Frequency } & 89 & 121 & 78 & 25 & 12\end{array}$$

• A) Condos
• B) Townhouses
• C) Homes
• D) Commercial
• E) Land

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Definitions:

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A reduction on the list price granted by a seller to a buyer based on the volume of the transaction or the buyer's trade status.

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Net Price

The price of a good or service after all discounts, rebates, and allowances have been subtracted from the gross price.

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The S&P/TSX Index is a stock market index that tracks the performance of the largest companies listed on the Toronto Stock Exchange in Canada.