SCENARIO 10-2
a Realtor Wants to Compare the Mean Sales-To-Appraisal

question 93

Short Answer

SCENARIO 10-2
A realtor wants to compare the mean 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. $\begin{array}{ll}\text { A: } 1.2,1.1,0.9,0.4 & \text { C: } 1.0,1.5,1.1,1.3 \\\text { B: } 2.5,2.1,1.9,1.6 & \text { D: } 0.8,1.3,1.1,0.7\end{array}$
Interpret the results of the analysis summarized in the following table:
$\begin{array}{lcclcc}\hline\text { Source } & \text { df } & \text { SS } & \text { MS } & \text { F } & \text { PR }>\text { F } \\\hline \text { Neighborhoods } & & 3.1819 & 1.0606 & 10.76 & 0.001 \\\text { Error } & 12 & & & &\\\hline\text { Total }&&4.3644\end{array}$
-Referring to SCENARIO 10-2, the null hypothesis for Levene's test for homogeneity of variances is a) $H _ { 0 } : \mu _ { A } = \mu _ { B } = \mu _ { C } = \mu _ { D }$
b) $H _ { 0 } : M _ { A } = M _ { B } = M _ { C } = M _ { D }$
c) $H _ { 0 } : \sigma _ { A } ^ { 2 } = \sigma _ { B } ^ { 2 } = \sigma _ { C } ^ { 2 } = \sigma _ { D } ^ { 2 }$
d) $H _ { 0 } : \pi _ { A } = \pi _ { B } = \pi _ { C } = \pi _ { D }$

---

Definitions:

Short Run

A period in economics during which some factors of production are fixed, making it impossible to change the level of output quickly.

Long Run

A period in which all factors of production and costs are variable, allowing for full adjustment to changes.

Expand

To increase in size, number, or scope, such as a business growing its operations or a market increasing its reach.

Internal Economies

Cost-saving measures that arise from the expansion of a firm, affecting the production process internally.