Amani computed in a two-way table the relative frequencies of sales of homes listed with two different real estate companies.

Home Sales by Real Estate Company


Sold in
100 Days or Less
Did Not Sell
within 100 Days
Company A
44.5%
55.5%
Company B
45.1%
54.9%

Which statement best describes the relationship between the two variables?
There is an association because the relative frequencies by column are similar.
There is an association because the relative frequencies by row are similar.
There is no association because the relative frequencies by column are similar.
There is no association because the relative frequencies by row are similar.

1 answer

To determine the relationship between the two variables (home sales with Company A and Company B, and whether homes sold in 100 days or less or did not sell within 100 days), we need to look at the relative frequencies given in the two-way table.

The key is to compare the relative frequencies by company (rows) and by outcome (columns).

  • For Company A, 44.5% sold in 100 days or less and 55.5% did not.
  • For Company B, 45.1% sold in 100 days or less and 54.9% did not.

While both companies have similar percentages for selling within and not selling within 100 days, we are primarily interested in the differences between the two companies.

Since the relative frequencies in the same column (sold in 100 days or less vs. did not sell within 100 days) are quite similar for both companies, it suggests that there is no significant association between the company and the speed of home sales.

Therefore, the best statement that describes the relationship between the two variables is: There is no association because the relative frequencies by column are similar.