Questions 18-21. A realtor wants to compare the average sales-to-appraisal ratio

Question

Questions 18-21. A realtor wants to compare the average sales-to-appraisal ratios of residential properties in 4 neighborhoods (A, B, C). Five properties were randomly selected from each neighborhood and the ratios recorded for each, as shown. 3.081 1.129 2.293 2.225 0.645 2.489 0.25 4.071 3.905 0.905 2.165 4.438 2.797 0.986 2.416 Run the One-way ANOVA (either Excel or JMP) at and answer the following questions Note: You may still work on this problem on the paper. Ifso, attach scanned copy ofyour pages 18. What is the unexplained variance (i.e., variance that is in the sample)? 19. What is the variance explained by the different neighborhoods? 20. What is the F-statistic? 21. Based on these results, what is your conclusion? Explain.

Explanation / Answer

Folloiwng is the output of oneway ANOVA generated by excel:

18:

The unexpalined variance is MSE = 1.82935

19:

The explained variance is MSR = 0.6086

20:

The F test statitsics is

F = 0.3317

21:

Since p-value of F test is greater than 0.05 so there is no significant difference between three populaiton means.

Anova: Single Factor SUMMARY Groups Count Sum Average Variance A 5 9.373 1.8746 0.955269 B 5 11.62 2.324 2.973458 C 5 12.802 2.5604 1.559322 ANOVA Source of Variation SS df MS F P-value F crit Between Groups 1.213612 2 0.606806 0.331706 0.724074 3.885294 Within Groups 21.9522 12 1.82935 Total 23.16581 14

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