Chapter 15, Problem 15.86ACB

Office rental growth rates Real estate market cycles are commonly divided into four phases that are based on the rate of change of the demand for and supply of properties: I—Recovery, II—Expansion, III— Hypersupply, and IV—Recession. The office market cycles of U.S. real estate markets was studied in the Journal of Real Estate Research (July/August 1999). For each of the four market cycles, office rental growth rates (i.e., growth rates for asking rents) were measured for a sample of six different real estate markets. These data (in percentages) are presented in the table below.

1. a. Specify the null hypothesis for a Kruskal-Wallis test.
2. b. Rank the 24 measurements in the data set.
3. c. Find the rank sums and calculate the test statistic.
4. d. Give the rejection region for the test at α = .05.
5. e. is there sufficient evidence to conclude that the distributions of office rental growth rates differ among the four market cycle phases?
6. f. What are the advantages and disadvantages of applying the Kruskal-Wallis H-test in part a rather than the parametric F-testof Chapter 9 ?