Solver ... Hypothesis Testing for Two or more Samples

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20160524174937unit_4_practice_problems_solution_layout.docx

Unit 4

Practice Problems

Practice Problem One

Two Sample Hypothesis Test for the Mean (Independent Samples)

Level of Significance

0.05

No Pool

Pool

Sample Mean

202763.158

225258.065

Sample Size

38

62

Sample Standard Deviation

33716.973

46371.959

Standard Error (Computed)

8037.41

Test Statistic (Computed)

-2.80

This is a two-tailed test since we are testing if the mean is different for the houses with vs. without a pool.

The p-value of .0062 is less than .05, and so we reject the null hypothesis and conclude that the mean sales price for homes is different for houses with vs. without a pool. The fact that the sample mean is greater for houses with a pool indicates that houses with a pool likely have a higher mean price in the population.

 

Lower

Upper

p-Value

Decision

 

Crit Value

Crit Value

 

 

 

Two-Tailed Test

-1.9600

1.9600

0.0062

Reject the null hypothesis



 

Practice Problem Two

Two Sample Hypothesis Test for the Mean (Paired Samples)

Level of Significance

0.05

Standard Error (Computed)

3545.08

Test Statistic (Computed)

0.25

This is a two-tailed test since we are testing whether the mean appraisals given by the two agents are different from one another. The p-value of .8001 is greater than .05, and so we fail to reject the null hypothesis; there is insufficient evidence to conclude the mean appraisals are different for the two agents. As a result we conclude that the two agents’ appraisals are not significantly different from one another.

 

Lower

Upper

p-Value

Decision

 

Crit Value

Crit Value

 

 

 

Two-Tailed Test

-1.9842

1.9842

0.8001

Do not reject the null hypothesis

d

 

Practice Problem Three

Two Sample Hypothesis Test for the Proportion

Level of Significance

0.05

Brick

Wood or Stucco

Number of Successes

30

32

Sample Size

40

60

Proportion (Computed)

0.75

0.53

Z Test Statistic (Computed)

2.19

This is an upper-tailed test since we are testing whether the proportion for brick homes with a pool is greater than that of wood & stucco homes with a pool. The p-value of .0144 is less than .05, and so we reject the null hypothesis. As a result, we conclude that brick homes are more likely to have a swimming pool than wood & stucco homes.

 

Lower Crit Value

Upper Crit Value

p-Value

Decision

 

 

Upper-Tail Test

n/a

1.6449

0.0144

Reject the null hypothesis

H1: (P1 > P2 or P2 < P1)

 

Practice Problem Four

Analysis of Variance

SUMMARY

Groups

Count

Sum

Average

Variance

2 BR

24

4807000.000

200291.667

1904911231.884

3 BR

26

5574000.000

214384.615

1205046153.846

4 BR

26

5552000.000

213538.462

1457058461.538

5 BR

24

5738000.000

239083.333

2430688405.797

ANOVA

Source of Variation

SS

df

MS

F

F crit

Treatment

18885182948.718

3

6295060982.906

3.635

2.699

Error

166271407051.282

96

1731993823.451

 

 

 

 

 

 

 

 

Total

185156590000.000

99

 

 

 

The p-value of .0156 is less than .05, and so we reject the null hypothesis. Thus we conclude that a difference exists in the mean sales price based on number of bedrooms that a home has. Looking at the Post Hoc tests, we see that homes with 5 bedrooms are worth significantly more than homes with 2, 3 or 4 bedrooms. There doesn't appear to be a significant difference in mean prices for homes with 2, 3 or 4 bedrooms.

Null hypothesis:



Alternate hypothesis:

Not all the means are equal

Significance level:

0.05

p-Value

0.0156

Decision:

Reject the null hypothesis

Mean Differences Post-Hoc Tests

 

 

 

 

 

Difference

Lower

Upper

Difference in Treatment Means???

Comparison

of Means

Conf. Limit

Conf. Limit

2 BR to 3 BR

14092.949

-9291.274

37477.172

- no difference -

2 BR to 4 BR

13246.795

-10137.428

36631.018

- no difference -

 

3 BR to 4 BR

846.154

-22065.612

23757.920

- no difference -

 

2 BR to 5 BR

38791.667

14944.345

62638.989

***Means are different***

3 BR to 5 BR

24698.718

1314.495

48082.941

***Means are different***

4 BR to 5 BR

25544.872

2160.649

48929.095

***Means are different***