Question: Analysis of Variance (ANOVA) is used to compare 3 or more sample means to determine the likelihood that they all came from the same population -- that they are all equal.

? why can't we just do several 2-sample tests like we did in the previous week?

? in your own words, briefly tell us what these are and what they mean:

o total variation

o treatment variation

o random variation

? how do you know if the means are likely to come from the same population (or not)?

A problem to test (show all steps):

A real estate developer is considering investing in a shopping mall on the outskirts of Atlanta, Georgia. Three parcels of land are being evaluated. Of particular importance is the income in the area surrounding the proposed mall. A random sample of four families is selected near each proposed mall. Following are the sample results. At the .05 level of significance, can the developer conclude there is a difference in the mean income?

Southwyck Area ($000s): 64 68 70 60

Franklin Park ($000s): 74 71 69 70

Old Orchard ($000s): 75 80 76 78