Jim Smith owns 3 real estate office in Anytown. he has decided to open one more office, but cannot decide between hometown or uptown as the towns where he wants to locate. he will be comparing the median household income, and the median home prices of the two towns to make his decision. is this parametric or nonparametric?
2006-07-13 00:36:05 · 2 answers · asked by authorknight1 1 in Science & Mathematics ➔ Mathematics
Parametric assumes that the distributions of the variables being assessed belong to known parametrized families of probability distributions. In your example, I would assume that the underlying distributions for median household income and median home prices are both are normally distributed. I would also suspect that there is a strong correlation between household income of a family and the price of their home. Both these assumptions would lead me to say this is parametric.
It's been awhile since I studied statistics, so I would go back to your professor or your textbook to confirm this.
2006-07-13 05:56:37 · answer #1 · answered by Puzzling 7 · 0⤊ 0⤋
Nonparametric, what about the locations of offices, sources, transportation, ........
2006-07-13 00:52:52 · answer #2 · answered by a_ebnlhaitham 6 · 0⤊ 0⤋