# Question #2006285: ANOVA

Question: Let’s say we want to test the hypothesis that there is no significant difference in the average selling prices of homes for the states Florida, Georgia, Idaho, Indiana, Louisiana, Oregon, Texas, and Washington that are advertised on forsalebyowner.com.

Here are the respective sample sizes that were taken for each of those states (during a previous term):

40, 30, 34, 30, 35, 30, 32, 34.

Here are the respective sample means that were reported for each of
those states (during a previous term):

$291110,$238717, $198836,$195229, $163967,$261062, $243255,$277410.

Provide an appropriate response to each of the following.

a) State the hypothesis to be tested using words or symbols.

b) If we use the 0.05 level of significance, state the critical value(s) for the test statistic.

c) In constructing an ANOVA table it is found that the Sum of Squares Within is 5,810.94 billion and the Sum of Squares Total is 6,250.22 billion. Using this information and the sample sizes stated above, calculate the remaining values of the ANOVA table. (Note that you can ignore the word billion because the units will cancel anyway when you calculate the F.) Specifically, state the values of:

i) sum of squares between
ii) d.f. between
iii) d.f. within
iv) d.f. total
v) mean square between
vi) mean square within
vii) the test statistic, F

d) State your decision and your conclusion in the context of this problem (selling prices) using the appropriate statistical terminology.

Solution: The solution consists of 390 words (3 pages)
Deliverables: Word Document

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