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The economic recovery in California has become increasingly divided between coastal and inland areas (The Wall Street Journal, February 2, 2010). For instance, the median home price in Southern California increased 7.5% in December 2009 from a year earlier to $360,000; however, the median home price declined by 10% to $180,000 over the same time period in the Inland Empire counties of San Bernardino and Riverside. An economist gathers 10 recent home sales (in $1,000s) in Southern California and 10 recent home sales (in $1,000s) in the Inland Empire counties. A portion of the results are shown in the accompanying table; the complete data set can be found on the text website, labeled California Homes.
California Home Prices
Home
Southern California
Inland Empire
1
418
167
2
491
186
....
10
885
262
In a report, use the sample information to:
1. Calculate and interpret relevant summary measures for California home prices in these two regions.
2. Explain why the t test for comparing means from independent samples might be inappropriate in this case.
3. Use the Wilcoxon rank-sum method to determine whether the median home price in Southern California is greater than the median home price in the Inland Empire.
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