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Vacation-home owners. The National Association of Realtors
Chapter 7, Problem 74E(choose chapter or problem)
Problem 74E
Vacation-home owners. The National Association of Realtors (NAR) reported the results of a March 2010 survey of home buyers. In a random sample of 1,982 residential properties purchased during the year, 198 were purchased as a vacation home. Five years ago, 14% of residential properties were vacation homes.
a. Do the survey results allow the NAR to conclude (at = .01) that the percentage of all residential properties purchased for vacation homes is less that 14%.
b. The NAR sent the survey questionnaire to a nationwide sample of 45,000 new home owners, of which 1,982 responded to the survey. How might this bias the results?
Questions & Answers
QUESTION:
Problem 74E
Vacation-home owners. The National Association of Realtors (NAR) reported the results of a March 2010 survey of home buyers. In a random sample of 1,982 residential properties purchased during the year, 198 were purchased as a vacation home. Five years ago, 14% of residential properties were vacation homes.
a. Do the survey results allow the NAR to conclude (at = .01) that the percentage of all residential properties purchased for vacation homes is less that 14%.
b. The NAR sent the survey questionnaire to a nationwide sample of 45,000 new home owners, of which 1,982 responded to the survey. How might this bias the results?
ANSWER:
Solution:
Step 1 of 3:
In a random sample of 1,982 residential properties purchased during the year, 198 were purchased as a vacation home.
Five years ago, 14% of residential properties were vacation homes.
-
We have to find that do the survey results allow the NAR to conclude(at
=.01) that the percentage of all residential properties purchased for vacation homes is less than 14%.
(b) The NAR sent the survey questionnaire to a nationwide sample of 45,000 new home owners, of which 1,982 responded to the survey. We have to find how might this bias the results.