SOLUTION: 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

Question 347681: 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 .01 significance level, can we conclude that there is more variation
in the selling prices of the oceanfront homes?

Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
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 .01 significance level, can we conclude that there is more variation
in the selling prices of the oceanfront homes?
--------------------
Ho: sigma(ocean)^2-sigma(non)^2 = 0
H1: sigma(ocean)^2-sigma(non)^2 > 0
---
I ran a 2-Sample Ftest and got the following:
test statistic: F = 4.5703
p-value = 0.0013
-----
Conclusion: Since the p-value is less than 1%, reject Ho.
========================
Please let me know if you do not understand this answer.
========================
Cheers,
Stan H.
RELATED QUESTIONS
**Help** 12-4 A real estate agent in the coastal area of Georgia wants to compare the... (answered by Theo)

A real estate agent lets the selling price for homes of a particular size in a particular (answered by jim_thompson5910)

Question text A real estate agent lets the selling price for homes of a particular size... (answered by rothauserc)

For selling a house, a real-estate agent receives 6% of the selling price. What was the... (answered by rfer)

A real estate agent lets the selling price for homes of a particular size in a... (answered by solver91311)

1.A real estate agent compares the selling prices of homes in two municipalities in... (answered by Theo)

A real estate agent wishes to determine whether tax assessors and real estate appraisers... (answered by math_tutor2020)

Refer to the Real Estate data, which reports information on homes sold in the Goodyear,... (answered by Solver92311)

A certain real-estate agent receives $6 for every &100 of a houses selling price. How... (answered by edjones)