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The heating bills for a selected sample of houses using various forms of heating

ID: 3428163 • Letter: T

Question

The heating bills for a selected sample of houses using various forms of heating are given below. (Values are in dollars.)

Natural Gas

Central Electric

Heat Pump

84

64

93

88

71

95

60

89

96

90

95

98

90

92

80

Below is the Sum of Squares for the between and within variation. Using this information, complete the table.

ANOVA Table

Source of Variation               SS                    df        MS      F          P-value

Between Groups                     303.3               _          _          _          _

Within Groups                      1565.0               _          _         

Total                                     1959.3               _

At a=0.05, test to see if there is a significant difference among the average heating bills of homes. Use the p-value approach.

Test the above hypothesis using the critical value approach. Let a=.05.

If it turns out that there appears to be a difference, how would you determine which pair is different?

Natural Gas

Central Electric

Heat Pump

84

64

93

88

71

95

60

89

96

90

95

98

90

92

80

Explanation / Answer

At a=0.05, test to see if there is a significant difference among the average heating bills of homes. Use the p-value approach.

Ho: there is no difference among the average heating bills of homes. (i.e. null hypothesis)

Ha:there is a signficant difference among the average heating bills of homes. (i.e. alternative hypothesis)

The test statistic is

F=1.1

The p-value of F test is 0.3645

Since the p-value is larger than 0.05, we do not reject the null hypothesis.

So we can not conclude that there is a signficant difference among the average heating bills of homes.

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Test the above hypothesis using the critical value approach. Let a=.05.

Ho: there is no difference among the average heating bills of homes. (i.e. null hypothesis)

Ha:there is a signficant difference among the average heating bills of homes. (i.e. alternative hypothesis)

The test statistic is

F=1.1

Given a=0.05, the critical value is F(0.95, df1=2, df2=12) =3.89 (from F table)

The rejection region is if F>3.89, we reject the null hypothesis.

Since F=1.1 is less than 3.89, we do not reject the null hypothesis.

So we can not conclude that there is a signficant difference among the average heating bills of homes.

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If it turns out that there appears to be a difference, how would you determine which pair is different?

Natural Gas and Heat Pump is different because the mean differences between these two groups are largest.

Mean n Std. Dev 80.0 5 12.10 Natural Gas 86.0 5 14.85 Central Electric 91.0 5 6.86 Heat Pump 85.7 15 11.83 Total