The Average Cost of Remodeling One Room in a House

question 115

Essay

The average cost of remodeling one room in a house was compared for four different remodeling companies. A random sample of 10 rooms remodeled by each company were selected all with the same square footage, and cost of remodeling each room was recorded. (Rooms were randomly chosen from different houses.)The data are shown below. An F -test using ANOVA concluded that average costs differ for at least two of the remodeling companies. Use Tukey's and LSD multiple comparison methods to determine which remodeling companies differ in their average cost. Compare the results and discuss. (Keep the experimentwise Type I error at or close to 5%.)

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Definitions:

Federal Income Tax

Tax levied by the national government on the annual income of individuals, corporations, trusts, and other legal entities.

Income Distribution

How a nation's total GDP is distributed amongst its population, often used to analyze economic inequality.

Tax Deductible Donation

A charitable contribution that can be subtracted from one's gross income, lowering the taxable income and thus reducing the tax liability.

Marginal Tax Rate

The marginal tax rate is the percentage of tax applied to your income for each tax bracket in which you qualify, essentially the rate paid on the last dollar of income.