In this analysis, categorical variables are compared.

Does proximity to Amazon's headquarters building affect the condition of Seatle rental homes?

Use the Seatle Rental Data. Test whether (or not) there is a relationship between dwellings near the headquarters building and the age of dwellings (new/remodeled).

What to do:

• Use the chi-square test.
• Provide your work for problems 1 to 7 below.
• Use Excel (please show me how you use it) or work by hand is fine too.
• Use the dataset below. You will need to find two categorical variables.
• Use the two categories in a pivot table to determine the observed counts.
• Compute the expected counts, the chi-square test statistic, the df, and the p-value.
• Make a suitable chart to compare variables.

Dataset:

	New Properties	Old Properties	Total
Close to the Building	14	24	38
Far from the Building	6	26	32
Total	20	50	70

Problems:

1. Give the observed counts and a side-by-side bar chart or stacked bar chart.
2. Provide the null and alternative hypotheses.
3. Provide a table of the expected counts.
4. Is the sample representative of the population of interest?
5. Is each expected count at least 5?
6. Find the test statistic, df, and p-value.
7. Describe the results in your conclusion. Your alpha = 0.10.

• (For 7.) Make a statement regarding the alternative hypothesis.
• (For 7.) Specify whether (or not) to reject a null.
• (For 7.) Context should be included.