TABLE 11-3
a Realtor Wants to Compare the Average Sales-To-Appraisal $\quad$

question 56

Multiple Choice

TABLE 11-3
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 $\quad$ C: 1.0, 1.5, 1.1, 1.3
B: 2.5, 2.1, 1.9, 1.6 $\quad$ D: 0.8, 1.3, 1.1, 0.7
Interpret the results of the analysis summarized in the following table:
$\begin{array}{llllll}\text { Source } & \text { df } & \text { SS } & \text { MS } & \text { F } & \text { PR }>\text { F } \\\hline \text { Neighborhoods } & & 3.1819 & & & \\& 1.0606 & 10.76 & 0.001 & & \\\text { Error } & 12 & & & &\\\text { Total }&& 4,3644 \end{array}$

-Referring to Table 11-3, what should be the conclusion for the Levene's test for homogeneity of variances at a 5% level of significance?

• A) There is sufficient evidence that the variances are not all the same.
• B) There is sufficient evidence that the variances are all the same.
• C) There is not sufficient evidence that the variances are not all the same.
• D) There is not sufficient evidence that the variances are all the same.

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Definitions:

Mound-Shaped

A description of a graph of a dataset that has a symmetrical bell-shaped appearance, reflecting a normal distribution.

Standard Deviation

An indicator of the degree of variability or spread within a dataset, reflecting the extent to which the data points diverge from the average value.

Variance

An index of variability in a set of data, established by taking the average squared deviation from the mean.

Tchebysheff's Theorem

A theorem that states for any real numbers k > 1, at least (1-1/k^2) of the data values fall within k standard deviations of the mean for any distribution.