Math Problem Statement
tell me step by step how to solve this in excel: A real estate agent in the coastal area of Georgia wants to compare the variation in the selling price of homes on the oceanfront with those one to three blocks from the ocean. A sample of 21 oceanfront homes sold within the last year revealed the standard deviation of the selling prices was $45,600. A sample of 18 homes, also sold within the last year, that were one to three blocks from the ocean revealed that the standard deviation was $21,330. At the 0.01 significance level, can we conclude that there is more variation in the selling prices of the oceanfront homes?
What is the decision rule? Use the 0.01 significance level.
Note: Round your answer to 2 decimal places.
What is the value of F?
Note: Round your answer to 2 decimal places.
At the 0.01 significance level, can we conclude that there is more variation in the selling prices of the oceanfront homes?
Solution
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Math Problem Analysis
Mathematical Concepts
Statistics
Hypothesis Testing
Variance Comparison
F-Test
Formulas
F = s1^2 / s2^2
Variance (s^2) = (Standard Deviation)^2
Theorems
F-Test for Equality of Variances
Suitable Grade Level
College Level (Undergraduate)
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