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To test whether there is significant difference in the mean income using ANOVA.
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
Old Orchard ($000s):
75
80
76
78
As it is a 2 _ 2 table, try also two-tailed two-sample z test for ð1 = ð2 and verify that z2 is same as your chi-square statistic. Which test do you favour? Describe why?
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The firm examined 35 randomly chosen fax transmissions during the next year, yielding a sample mean of 14.44 with a standard deviation of 4.45 pages.
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