Chi Square Test

Chi Square TestObserved Expected10 723 2039 4540 4727 323 5A real estate company is analyzing the selling prices of residential homes in a given community; 250 homes that have been sold in the past month are randomly selected and their selling prices recorded. The statistician working on the project has stated that in order to perform various statistical tests, the data must be distributed according to a normal distribution. In order to determine whether the selling prices of homes included in the random sample are normally distributed, the statistician divides the data into 6 classes of equal size and records the number of observations in each class. She then performs a chi-square goodness-of-fit test for normal distribution. The results are summarized in the table. 1. Complete the five step hypothesis Chi Square Goodness of fit test at level of significance 0.05. What is your decision? 2. What is your decision if you conducted the hypothesis test at level of significance 0.10? 3. At what significance level would your decision change?

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