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ANOVA Test on Mean Income of Families

Please answer the question below. Please submit your solution as an Excel attachment and be sure to show ALL calculations that you use to prepare the ANOVA table.

A real estate developer is considering investing in a shopping mall on the outskirts of Atlanta, Georgia. Three parcels of land are being evaluated. A random sample of four families is selected near each proposed mall. Following are the sample results. At the .05 significance level, can the developer conclude there is a difference in the mean income? Use the five-step hypothesis testing procedure.

Southwyck Are Franklin Park Old Orchard
($000) ($000) ($000)
64 74 75
68 71 80
70 69 76
60 70 78


Solution Summary

This solution provides a null and alternative hypothesis and calculates the test statistic for the ANOVA test. The F-statistic is then compared to the p-value and a decision is made to accept or reject the null hypothesis.