A realtor wants to compare the average salestoappraisal rati

A realtor wants to compare the average sales-to-appraisal ratios of residential properties sold in four neighborhoods (A, B, C, and D). Four properties are randomly selected from each neighborhood and the ratios recorded for each, as shown below.

A:        1.2, 1.1, 0.9, 0.4                C:   1.0, 1.5, 1.1, 1.3

B:        2.5, 2.1, 1.9, 1.6                D:   0.8, 1.3, 1.1, 0.7

Interpret the results of the analysis summarized in the following table:

Source                      df              SS            MS                   F             PR > F

Neighborhoods                       3.1819       1.0606         10.76          0.001                                             

Error                        12           

Total                                        4.3644

A ) What is the value of the test statistic for Levene\'s test for homogeneity of variances?

B) What is the critical value of Levene\'s test for homogeneity of variances at a 5% level of significance?

PLEASE SHOW ALL WORK AND FORMULAS USED.

Solution

a) test statistic for Levene\'s test for homogeneity of variances is 10.76 as we will use basic concept of ANOVA to test equality of variance of 4 sample

b) critical value of Levene\'s test for homogeneity of variances at a 5% level of significance with d.f 3 and 12 is 3.4903

Since Cal Levene\'s test = 10.76 > tab Levene\'s test = 3.4903

We will reject the null hypothesis and conclude that there is a significant difference between the variance of 4 sample