AQA S2 2013 January — Question 2

Exam BoardAQA
ModuleS2 (Statistics 2)
Year2013
SessionJanuary
TopicChi-squared distribution

2 A large estate agency would like all the properties that it handles to be sold within three months. A manager wants to know whether the type of property affects the time taken to sell it. The data for a random sample of properties sold are tabulated below.
\multirow{2}{*}{}Type of property
FlatTerracedSemidetachedDetachedTotal
Sold within three months434281884
Sold in more than three months9188641
Total13523624125
  1. Conduct a \(\chi ^ { 2 }\)-test, at the \(10 \%\) level of significance, to determine whether there is an association between the type of property and the time taken to sell it. Explain why it is necessary to combine two columns before carrying out this test.
  2. The manager plans to spend extra money on advertising for one type of property in an attempt to increase the number sold within three months. Explain why the manager might choose:
    1. terraced properties;
    2. flats.
      (2 marks)