Comparing Standard Deviations At the .01 Significance Level
Not what you're looking for?
A real estate agent in the coastal area of the Carolinas 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?
Purchase this Solution
Solution Summary
The solution uses a statistical test to compare standard deviations and answer the question "can we conclude that there is more variation in the selling prices of the oceanfront homes?".
Solution Preview
An F-test is used to test if the standard deviations of two populations are equal. The test statistic is equal to
F = (s1)^2 / (s2)^2
where s1 and s2 are the sample standard ...
Purchase this Solution
Free BrainMass Quizzes
Terms and Definitions for Statistics
This quiz covers basic terms and definitions of statistics.
Measures of Central Tendency
Tests knowledge of the three main measures of central tendency, including some simple calculation questions.
Know Your Statistical Concepts
Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.
Measures of Central Tendency
This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.