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. 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. Discuss the business implications of your findings.
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
Mean
591
350
776
563
Variance
6155
24062.5
18130
6845
Showing all of your equations and calculations, answer the following questions:
What is the between treatments estimate of population variance?
What is the within treatments estimate of population variance?
What is the value of the test statistic?
What are the p-value range and the critical value?
Based on the rejection rules for p-value and critical value, what is your statistical and English conclusion?
Summarize your results in an ANOVA table.