A researcher wants to understand how an annual mortgage payment (in dollars) dep

Question

A researcher wants to understand how an annual mortgage payment (in dollars) depends on income level and zonal location using a two-way ANOVA without interaction. The data and an incomplete ANOVA table are shown below.

At the 1% significance level, the conclusion for the hypothesis test about factor B is ____________________________.

do not reject the null hypothesis; the average mortgage payments differ by zonal location

reject the null hypothesis; we cannot conclude the average mortgage payments differ by zonal location

reject the null hypothesis; the average mortgage payments differ by zonal location

do not reject the null hypothesis; we cannot conclude the average mortgage payments differ by zonal location

Income (Factor A) Low Medium High Zonal Location (Factor B) Downtown 25 55 60 Suburbs 70 75 100 Midtown 30 35 40 Uptown 10 25 30

Explanation / Answer

applying two way ANOVA on above:

(please revert if any of number is not matching )

  At the 1% significance level, the conclusion for the hypothesis test about factor B is :

reject the null hypothesis; the average mortgage payments differ by zonal location

Source of Variation SS df MS F Rows (Factor B) 5956.26 3 1,985.42 32.86 Columns (Factor A) 1,137.50 2 568.75 9.41 Error 362.49 6 60.415 Total 7,456.25 11

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