[Solution] An economist wants to test whether mean house prices are associated with neighborhood air pollution. The economist randomly samples recent house purchases


Question: An economist wants to test whether mean house prices are associated with neighborhood air pollution. The economist randomly samples recent house purchases in three areas in which the prevailing air pollution levels are low, moderate and high. The sample yields the following price data:

Low Air Pollution Moderate Air Pollution High Air Pollution
120 61 40
68 59 55
40 110 73
95 75 45
83 80 64

x 1 = 81.2 x 2 =77.0 x 3 =55.4

s 1 =29.8781 s 2 =20.5061 s 3 =13.5019

  1. In symbols and words state the null and alternative hypotheses of this analysis.
  2. Calculate the BSS, WSS, TSS, and their associated degrees of freedom.
  3. Complete the ANOVA table for this analysis.
  4. Based on your results what do you conclude about the association between neighborhood air pollution and house prices?

Price: $2.99
Solution: The downloadable solution consists of 3 pages
Deliverable: Word Document

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