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A subtle form of racial discrimination in housing is "racial steering." Racial steering occurs when real estate agents show prospective buyers only homes in neighborhoods already dominated by that family's race. This violates the Fair Housing Act of 1968. According to an article in Chance magazine (Vol. 14, no. 2 [2001]), tenants at a large apartment complex recently filed a lawsuit alleging racial steering. The complex is divided into two parts: Section A and Section B. The plaintiffs claimed that white potential renters were steered to Section A, while African-Americans were steered to Section B. The table displays the data that were presented in court to show the locations of recently rented apartments. Do you think there is evidence of racial steering?
Solution
VerifiedWe perform a independence test. The null hypothesis states that the proportion of each race is the same in each section.
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