Interpret the results of the statistical test


Solve the below problem:

Q: 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.

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?

Atlanta New York Los Angeles Chicago
650 250 850 540
480 525 700 450
550 300 950 675
600 175 780 550
675 500 600 600

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Basic Statistics: Interpret the results of the statistical test
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