A sample of 1790 homes in a neighborhood of a large city during a recent year pr

Question

A sample of 1790 homes in a neighborhood of a large city during a recent year produced the data in the table for the number of bedrooms and house price. Is the price of the house independent of whether it has 3 or more bedrooms? Select the correct choice below and fill in the answer box to complete your choice. (Round to three decimal places as needed.) A. No because P (450-600Kl greaterthanorequalto 3 Bedrooms) = and P(450-600K) = Since the probabilities are not equal, the variables are not independent B. Yes because P(450 - 600 K1 greaterthanorequalto Bedrooms) = and P(450-600K) = Since the probabilities are equal, the variables are independent.

Explanation / Answer

Following table shows the row total and column total:

P(450 -600K| >= 3 bed rooms) = 132 / 673 = 0.196

and

P(450 -600k) = 425/1790 = 0.237

Since above two probabilities are not equal so these variables are not independent.

Hence, option A is correct.

3 or more Bedrooms House Price Yes No Total Less than $300K 333 489 822 $300-450K 208 335 543 $450-600k 132 293 425 Total 673 1117 1790

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