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Housing the Ultra-Poor - Theory and Practice in Haiti

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The following is an economic case study. Based on your understanding of the ANOVA and utilizing the 5-step plus Hypothesis testing process, determine the F-calculation and the F-critical of the data attached. In addition, write a summary of the inference made based on the acceptance or rejection of your hypothesis statement. Please include facets of micro-economic theory. This information is attached.

A Model of Socio-Economic Differences

Housing the Ultra-Poor: Theory and Practice in Haiti

The following study was developed by Economist Simon Fass. Fass surveyed a sample population of low-income households in St. Martin. The variables analyzed were monthly income per adult and choice of rental contract for housing.

All families in St. Martin had to opt for one of 3 available time packages. They could pay in advance for a week, a month, or six months; and the shorter the time package, the higher the unit price. Payment by the week cost 10 to 20 percent more in monthly rent per square meter than payment by the month, and payment by the month cost twice as much as for 6 months. But offsetting the higher unit cost was the advantage of lower cash outlays. To obtain a week of housing required an average prepayment of $1.55. A month cost $5.30 and 6 months $18.90 (Fass, 1987)

You must determine if there is a difference among the income of the adults in respect to the housing contract they choose. Could the data of income be drawn from the same population or are we possibly looking at 2 or maybe 3 different sample population.

References

Fass, Simon. (1987). Housing the Ultra-Poor: Theory and Practice in Haiti. American Planning Association Journal, spring, pp. 193-205. Giventer, L.L. (1990). Statistical Analysis for Public Administration, (1), 11-20 to 11-21.

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Solution Summary

The solution provides a detailed discussion on the given problem and step-by-step method of performing Analysis of Variance or ANOVA Hypothesis Test on the given data. All the steps of hypothesis testing (formulation of null and alternate hypotheses, selection of significance level, choosing the appropriate test-statistic, decision rule, calculation of test-statistic and conclusion) have been explained in details. A separate Excel sheet showing the ANOVA analysis has also been included for better understanding.

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See Also This Related BrainMass Solution

Degrees of freedom, Non-parametric tests, Chi-Square, ANOVA

DQ 1
A recent study of four hundred accidents that occurred on a Saturday night were analyzed. Information collected was the number of vehicles involved and if alcohol played a role in the accident.

Role of Alcohol? Number of Vehicles Involved
1 2 3 Totals
Yes 50 100 20 170
No 25 175 30 230
Totals 75 275 50 400

Degrees of freedom for this test are:
a. 4
b. 3
c. 2
d. 1

DQ 2
Non-parametric tests that require a minimum of ordinal level data can be applied to interval or ratio data.
a. True
b. False

DQ 3
Briefly list the components associated to the Chi-Square

DQ 4
Based on your knowledge of economics, how do you think Economic Consumption theory relates to the ANOVA Team project:

I know I did not give you much of the study information, but with the information you have and your calculations, can you infer or predict how Haitians behave as consumers in regards to Consumption theory?

(Hint about Consumption Theory): Think about this statement: "When you make more money you spend......"

A Model of Socio-Economic Differences
Housing the Ultra-Poor: Theory and Practice in Haiti

The following study was developed by Economist Simon Fass. Fass surveyed a sample population of low-income households in St. Martin. The variables analyzed were monthly income per adult and choice of rental contract for housing.

All families in St. Martin had to opt for one of 3 available time packages. They could pay in advance for a week, a month, or six months; and the shorter the time package, the higher the unit price. Payment by the week cost 10 to 20 percent more in monthly rent per square meter than payment by the month, and payment by the month cost twice as much as for 6 months. But offsetting the higher unit cost was the advantage of lower cash outlays. To obtain a week of housing required an average prepayment of $1.55. A month cost $5.30 and 6 months $18.90 (Fass, 1987)

You must determine if there is a difference among the income of the adults in respect to the housing contract they choose. Could the data of income be drawn from the same population or are we possibly looking at 2 or maybe 3 different sample population.

References
Fass, Simon. (1987). Housing the Ultra-Poor: Theory and Practice in Haiti. American Planning Association Journal, spring, pp. 193-205. Giventer, L.L. (1990). Statistical Analysis for Public Administration, (1), 11-20 to 11-21.

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