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


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