Question

In: Statistics and Probability

The city of Tucson, Arizona, employs people to assess the value of homes for the purpose...

The city of Tucson, Arizona, employs people to assess the value of homes for the purpose of establishing real estate tax. The city manager sends each assessor to the same five homes and ten compares the results. The information is given below, in thousands of dollars. Can we conclude that there is a difference in the assessors, at a significance level of 0.05?

Home Smith Norman Thomas Holiday
A 53 55 49 45
B 50 51 52 53
C 48 52 47 53
D 70 68 65 64
E 84 89 92 86

Part A:

Assessor A.

What is the null hypothesis statement for this problem?

B. What is the alternative hypothesis statement for this problem?

C. What is alpha for this analysis?

D. What is the most appropriate test for this problem? (choose one of the following)

a. F-Test Two-Sample for Variance

b. Anova: Single Factor

c. Anova: Two-Factor with Replication

d. Anova: Two-Factor without Replication

E. What is the value of the test statistic for the most appropriate analysis?

F. What is the value of the critical value for the most appropriate analysis?

G. Is it reasonable to conclude that there is a difference in the mean home value based on the assessor? (choose one of the following)

a. Yes

b. No

h. What is the p-value for this analysis?

Part B:

Home

A. What is the null hypothesis statement for this problem?

B. What is the alternative hypothesis statement for this problem?

C. What is alpha for this analysis?

D. What is the most appropriate test for this problem? (choose one of the following)

a. F-Test Two-Sample for Variance

b. Anova: Single Factor

c. Anova: Two-Factor with Replication

d. Anova: Two-Factor without Replication

E. What is the value of the test statistic for the most appropriate analysis?

F. What is the value of the critical value for the most appropriate analysis?

G. Is it reasonable to conclude that there is a difference in the value based on the home? (choose one of the following)

a. Yes

b. No

h. What is the p-value for this analysis?

you must show your work and you must use the appropriate formulas in Excel to answer the questions. SHOW ALL FORMULAS USED IN DETAILS.

Solutions

Expert Solution

Anova: Two-Factor Without Replication
Anova: Two-Factor Without Replication row data, j Factor A
Smith Norman Thomas Holiday total count, n j mean , x̅ j std. dev., sj sample variances, sj^2 ( x̅ j - x̅̅)² nj( x̅j - x̅̅)²
A 53 55 49 45 202 A 4 50.5 4.4347 19.667 116.640 466.560
B 50 51 52 53 206 B 4 51.5 1.2910 1.667 96.040 384.160
C 48 52 47 53 200 C 4 50 2.9439 8.667 127.690 510.760
D 70 68 65 64 267 D 4 66.75 2.7538 7.583 29.703 118.810
E 84 89 92 86 351 E 4 87.75 3.5000 12.250 699.603 2798.410
6 6
7 7
total 305 315 305 301 1226 SSA = total= 4278.700
SSA=Σnj( x̅j - x̅̅)² = 4278.700
column data , i (Factor B) Smith Norman Thomas Holiday SST = Σ(Xij - X̅̅ ) = 4428.2
count, ni = 5 5 5 5
mean , x̅ i = 61.000 63.000 61.000 60.200 SSE = SST-SSA-SSB = 128.100
std. dev., si = 15.524 16.047 18.695 15.928
sample variances, si^2 = 241.000 257.500 349.500 253.700
grand mean , x̅̅ = ΣXij/Σn =   61.3
square of deviation of sample mean from grand mean,( x̅ - x̅̅)² 0.09 2.89 0.09 1.21
TOTAL
SS(between)= SSB = Σni( x̅ i - x̅̅)² = 0.45 14.45 0.45 6.05 21.4

so, SSA=   4278.700
SSB=   21.4
SSE=   128.100
df factor A(row) = r-1 =   4
df factor B(column) = c-1 =    3
here, N =    20
df error = (r-1)(c-1) =   12
  
mean square factor A , MSA = SSA/df=    1069.675
  
mean square(factor B) =MSB= SSB/df =    7.133333333
  
mean square error = MSE =SSE/df =    10.675
  
F-statistics  
Factor A = MSA/MSE =    100.2037471
factor B = MSB/MSE=   0.668227947

ANOVA
Source of Variation SS df MS F-stat p-value F-critical Result
Rows 4278.7000 4 1069.6750 100.204 0.0000 3.2591667 significant
Columns 21.4000 3 7.1333 0.668 0.5876 3.4902948 not significant
Error 128.1000 12 10.6750
Total 4428.2000 19
α = 0.05

using above result, we can answer following question:

Part A:

Assessor A.

What is the null hypothesis statement for this problem?

there is no difference in the mean home value based on the assessor

B. What is the alternative hypothesis statement for this problem?

there is a difference in the mean home value based on the assessor

C. What is alpha for this analysis?

0.05

D. What is the most appropriate test for this problem? (choose one of the following)

d. Anova: Two-Factor without Replication

E. What is the value of the test statistic for the most appropriate analysis?

F-stat=0.6682

F. What is the value of the critical value for the most appropriate analysis?

F-critical=3.4903

G. Is it reasonable to conclude that there is a difference in the mean home value based on the assessor? (choose one of the following)

since F-stat<F-critical, do not reject Ho,

so, answer is

b. No

h. What is the p-value for this analysis?

0.5876

Part B:

Home

A. What is the null hypothesis statement for this problem?

there is no difference in the value based on the home

B. What is the alternative hypothesis statement for this problem?

there is a difference in the value based on the home

C. What is alpha for this analysis?

0.05

D. What is the most appropriate test for this problem? (choose one of the following)

d. Anova: Two-Factor without Replication

E. What is the value of the test statistic for the most appropriate analysis?

F-stat=100.2037471

F. What is the value of the critical value for the most appropriate analysis?

F-critical=3.2592

G. Is it reasonable to conclude that there is a difference in the value based on the home? (choose one of the following)

since, F-stat>f-critical, so, reject Ho

hence answer is

a. Yes

h. What is the p-value for this analysis?

p-value=0.000

------------------------

please revert for doubts


Related Solutions

The city of Wenatchee employs people to assess the value of homes for the purpose of...
The city of Wenatchee employs people to assess the value of homes for the purpose of establishing real estate tax. The city manager sends each assessor to the same 5 homes and then compares the results. The information is given below, in thousands of dollars. Can we conclude that there is a difference in the assessors, at Alpha= .05 Assessor Home Livingston Wilson Eilers Phelps A $51 $55 $49 $45 B $50 $45 $52 $53 C $53 $54 $47 $55...
Johnson Associates is a catering firm in Tucson, Arizona, with revenue of $4 million. The business...
Johnson Associates is a catering firm in Tucson, Arizona, with revenue of $4 million. The business began ten years ago as a one-owner bakery, but has dramatically changed in size and function during the past five years. The four partners foresee the business doubling in sales revenue within two years, and expect the firm to expand into other services including flowers, furnishings, decorations, and music. Johnson Associates employs six full-time and ten part-time employees. The four partners also work full-time,...
A group of high-school parents in Tucson, Arizona, in conjunction with faculty from the University of...
A group of high-school parents in Tucson, Arizona, in conjunction with faculty from the University of Arizona, claim that young women in the Tucson high schools not only are called on less frequently, but receive less time to interact with the instructor than do young men. They would like to see the school district hire a coordinator, spend money (and time) on faculty workshops, and offer young women classes on assertiveness and academic communication. To make things simple, assume that...
In a recent survey of homes in a major Midwestern city, 30% of the homes have...
In a recent survey of homes in a major Midwestern city, 30% of the homes have a fax machine and 75% have a personal computer. Suppose 15% of the homes have both a fax machine and a personal computer. What is the probability that a randomly selected home does not have a fax machine or does not have a personal computer?
In a recent survey of homes in a major Midwestern city, 10% of the homes have...
In a recent survey of homes in a major Midwestern city, 10% of the homes have a fax machine and 55% have a personal computer. Suppose 7% of the homes with a fax machine also have a personal computer. What is the probability that a home has a fax machine or a personal computer?
in the second half of the 20th century, the city of phoenix, Arizona exploded in size....
in the second half of the 20th century, the city of phoenix, Arizona exploded in size. between 1990 and 2000 the population of phoenix increased exponentially. in 1990 the population was 928,000 people, and in 2000. the population was 1,377,000. a) what is the 1 decade (10 year) growth factor for the population of phoenix since 1990? b) write a function f(d), that determines the population of phoenix in terms of the number of decades, d, that have elapsed since...
Homes in a certain town have a mean value of $88,950. It is assumed that homes...
Homes in a certain town have a mean value of $88,950. It is assumed that homes in the vicinity of the school have a higher value. A sample of 12 homes near the school is selected and it appears as if the population is normal. Their mean value is $92,460 with a standard deviation of $5200. Can we prove with 95% certainty that homes near the school do indeed have a higher value?
Terry Lamoreaux has homes in Sydney, Australia and Phoenix, Arizona. He travels between the two cities...
Terry Lamoreaux has homes in Sydney, Australia and Phoenix, Arizona. He travels between the two cities at least twice a year. Because of his frequent trips he wants to buy some new, high quality luggage. He's done his research and has decided to go with a Briggs & Riley brand three-piece luggage set. There are retails stores in both Phoenix and Sydney. Terry was finance major and wants to use purchasing power parity to determine if he is paying the...
1/ Arizona Desert Homes (ADH) constructed a new subdivision during 2017 and 2018 under contract with...
1/ Arizona Desert Homes (ADH) constructed a new subdivision during 2017 and 2018 under contract with Cactus Development Co. Relevant data are summarized below: Contract amount $ 3,270,000 Cost: 2017 1,260,000 2018 660,000 Gross profit: 2017 890,000 2018 460,000 Contract billings: 2017 1,635,000 2018 1,635,000 ADH recognizes revenue upon completion of the contract. What is the journal entry in 2018 to record revenue? Multiple Choice Construction in progress 460,000 Cost of construction 660,000 Revenue from long-term contracts 1,120,000 Accounts receivable...
Plantation Homes Company is considering the acquisition of Condominiums, Inc. early in 2015. To assess the...
Plantation Homes Company is considering the acquisition of Condominiums, Inc. early in 2015. To assess the amount it might be willing to pay, Plantation Homes makes the following computations and assumptions. A. Condominiums, Inc. has identifiable assets with a total fair value of $14,070,000 and liabilities of $8,153,000. The assets include office equipment with a fair value approximating book value, buildings with a fair value 30% higher than book value, and land with a fair value 71% higher than book...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT