Question

Family transportation costs are usually higher than most people believe because those costs include car payments, insurance, fuel costs, repairs, parking, and public transportation. Twenty randomly selected families in four major cities are asked to use their records to estimate a monthly figure for transportation cost. Use the data obtained and ANOVA to test whether there is a significant difference in monthly transportation costs for families living in these cities. Assume that = .05. Discuss the business implications of your findings. The data are analyzed using Excel. The results follow.

Anova: Single Factor
SUMMARY
Groups	Count	Sum	Average	Variance
Atlanta	5	3955	791	6155
New York	5	2750	550	24062.5
Los Angeles	5	4880	976	18130
Chicago	5	3815	763	6845
ANOVA
Source of Variation	SS	df	MS	F	P-value	F crit
Between Groups			152210		0.000358
Within Groups
Total	677400

At alpha = .05, what is the critical value of the Tukey (HSD) test statistic for a significant difference in means that are to be compared simultaneously?

Answer 1

Frome the given data

ANOVA Table				Alpha =	0.05
Source	Sum of square	df	Mean Square	F-ratio	F-critical	P-value
Between Groups	456630	3	152210	11.0312	3.2389	0.000
Withing Groups	220770	16	13798.125
Total	677400	19

Since P-value < alpha 0.05 so we reject H0

Thus we conclude that  there is a significant difference in monthly transportation costs for families living in these cities