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Hypothesis Testing of Variance & ANOVA Table

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23. A real estate agent in the coastal area of Georgia wants to compare the variation in the
selling price of homes on the oceanfront with those one to three blocks from the ocean.
A sample of 21 oceanfront homes sold within the last year revealed the standard deviation
of the selling prices was $45,600. A sample of 18 homes, also sold within the last
year, that were one to three blocks from the ocean revealed that the standard deviation
was $21,330. At the .01 significance level, can we conclude that there is more variation
in the selling prices of the oceanfront homes?

28. The following is a partial ANOVA table.
Sum of Mean
Source Squares df Square F
Treatment 2
Error 20
Total 500 11

Complete the table and answer the following questions. Use the .05 significance level.
a. How many treatments are there?
b. What is the total sample size?
c. What is the critical value of F?
d. Write out the null and alternate hypotheses.
e. What is your conclusion regarding the null hypothesis?

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Solution Summary

The solution provides step by step method for the calculation of testing of hypothesis of variance and completion of ANOVA table. Formula for the calculation and Interpretations of the results are also included. Interactive excel sheet is included. The user can edit the inputs and obtain the complete results for a new set of data.

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