Comparing Standard Deviations At the .01 Significance Level for Real Estate
A real estate agent wants to compare the variation in the selling price of homes on the oceanfront with those 3 blocks away 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?
https://brainmass.com/statistics/hypothesis-testing/comparing-standard-deviations-significance-level-real-estate-22936
Solution Preview
For the first sample: n1 = 21 (degrees of freedom = 21 - 1 = 20) and s1 = 45,600.
For the second ...
Solution Summary
This solution compares the variation in selling prices of homes on the oceanfront versus those a few blocks away in a few lines of simple calculations.
Free BrainMass Quizzes
-
Terms and Definitions for Statistics
This quiz covers basic terms and definitions of statistics.
-
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.
-
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.