A study has been conducted to determine whether the mean spending for recreation

Question

A study has been conducted to determine whether the mean spending for recreational activities during the month of August differs for residents of three cities. Random samples of 30 people were selected from each city and their spending on recreation was recorded during August. The following ANOVA-single factor output was generated using Excel: (a) Fill-in the missing values denoted by ?. (b) Formulate the appropriate hypotheses to be tested and state it clearly. (c) Test the hypotheses you formulated in b above using alpha = .01 and interpret the result of the test. (d) Conduct post-hoc analysis using Tukey-Kramer procedure for determining which populations have different means (use q_a = 3.38) (e) Under what conditions should you use a non-parametric test for the above situation? Name the non-parametric test that you would use in this case. a. Discuss the factors that should be taken into consideration in the determination of the sample size for a given study. b. Al-Baloush, a real estate appraiser in Sohar, has developed a regression model to help appraise residential housing in the Hambar area of Sohar town. The model was developed using recently sold homes in a particular neighborhood. The price (Y) of the house is based on the square footage (X) of the house. The model is = 13,473 + 37.65X The coefficient of correlation for the model is 0.63. (a) Use the model to predict the selling price of a house that is 1,860 square feet. (b) A house with 1,860 square feet recently sold for exist95,000. Explain why this is not what the model predicted. (c) If you were going to use multiple regression to develop an appraisal model, what other independent variables might be included in the model?

Explanation / Answer

SOl:

df

2

87

F=MSbetween/MS within=153350.9/2583.949=59.34749

SolutionB:

Ho: All three city group means spendings are equal

mean(city1)=mean(city2)=mean(city3)

H1:Atleast one of the means are different

alpha=0.05

SolutionC:

p=5.54E-17

p<0.05

Reject Null hypothesis

Accept alternative Hypothesis

Conclusion:

there is sufficient evidence at 5% level of significance to support the claim that the mean spending for recreational activities during the month of August differs for residents of three cities.

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