In: Statistics and Probability
Tenants at a large apartment complex recently filed a lawsuit alleging racial steering. The plaintiffs claimed that white potential renters were steered to Section A, while black renters were steered to Section B. The table displays the data that were presented in court to show the locations of recently rented apartments. Do you think there is evidence of racial steering?
white black
Section A 94 25
Section B 87 27
Compute the chi-square statistic.
chi squared χ2=__
(Round to two decimal places as needed.)
Find the P-value.
The P-value is__
(Round to three decimal places as needed.)
Based on these results, what is your conclusion?
The null and alternative hypothesis
H0: There is no relationship between race and section
Ha : There is a relationship between race and section
Test statistic
where Oi : observed frequency
Ei : expected frequency
The contingency table
white | black | total | |
A | 94 | 25 | 119 |
B | 87 | 27 | 114 |
total | 181 | 52 | 233 |
Expected frequency calculation
E(94) = 119*181/233
E(25) =119-E(94)
etc
The contingency table of expected and observed frequency
white | black | total | |
A | 94(92.44) | 25(26.56) | 119 |
B | 87(88.56) | 27(25.44) | 114 |
total | 181 | 52 | 233 |
The expected frequencies are in the parenthesis
Calculation of Chi square
Oi | Ei | (Oi-Ei)^2/Ei | |
94 | 92.44 | 0.0263 | |
25 | 26.56 | 0.0916 | |
87 | 88.56 | 0.0275 | |
27 | 25.44 | 0.0957 | |
total | 0.2411 |
Thus
0.24
degrees of freedom = (2-1)*(2-1) = 1
Note : degrees of freedom = ( number of rows -1) *( number of columns-1)
P value = 0.624
Since P value > 0.05
We reject H0
There is no sufficient evidence of racial steering.
Note : Excel formula for P value "=CHISQ.DIST.RT(0.24,1)"