Question

In: Statistics and Probability

Tenants at a large apartment complex recently filed a lawsuit alleging racial steering. The plaintiffs claimed...

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?

Solutions

Expert Solution

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)"


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