Question 16.60

16.60 House prices.

CASE 11.3 Case 11.3 (page 566) provides data the selling prices of 504 houses in West Lafayette, Indiana. We wonder if there is a difference between the average prices of houses with three bathrooms and houses with more than three bathrooms in this community. In the provided data file, three bathroom houses are coded by “0” and houses with more than three bathrooms are coded by “1.”

baths

  1. Make a Normal quantile plot of the prices of three bathroom houses. What kind of deviation from Normality do you see?
  2. The tests are quite robust. State the hypotheses for the proper test, carry out the test, and present your results including appropriate data summaries.
  3. Carry out a nonparametric test. Once more, state the hypotheses tested and present your results for both the test and the data summaries that should go with it.
  4. Compare the nonparametric result of part (c) with the test result of part (b).