Tests for the Regression Coefficients Model Assumptions

Total points: 9

For this assignment, submit one Excel file. Save the file Dataset_HW-6 as HW-6_Bus 310_your last name.

1. Family transportation costs are usually higher than most people believe because those costs include car payments, insurance, fuel costs, repairs, parking, and public transportation. Twenty randomly selected families in four major cities are asked to use their records to estimate a monthly figure for transportation cost. These data are listed in the file Dataset_HW-6.

a. Use the data obtained and ANOVA to test whether there is a significant difference in monthly transportation costs for families living in these cities. Assume that α = .05. Report a p-value and interpret the results of the statistical test.

b. Use α= 0.05, and construct confidence intervals for all pairs of differences between means. Which of these differences, if any, are statistically significant at the selected significance level?

[Hint: Similar problem with solution is available under Lec-7 folder.]

[3 + 6 = 9 points]