QM 520 Case Study 2.PROBLEM 1 - Family Transportation Costs

PROBLEM 1 - Family Transportation Costs Situation: Family transportation costs are usually higher than most people believe because those costs include car payments, insurance, fuel costs, repairs, parking, and public transportation. We asked twenty randomly selected families in four major cities to use their records to estimate a monthly figure for transportation costs. Action: Use the following data and ANOVA to test whether there is a significant difference in monthly transportation costs for families living in these cities. Use significance level of 5%. Discuss the business implications of the findings. Atlanta New York Los Angeles Chicago $850 $450 $1050 $740 $680 $725 $900 $650 $750 $500 $1150 $875 $800 $375 $980 $750 $875 $700 $800 $800 a. SHOW THE Ho AND Ha APPROPRIATE FOR THIS PROBLEM b. WHAT IS THE P-VALUE FOR THIS PROBLEM? c. COMPARE P-VALUE TO PROBLEM STATEMENT SPECFIED SIGNIFICANCE VALUE AND STATE WHETHER Ho SHOULD OR SHOULD NOT BE REJECTED d. BASED ON WHETHER Ho IS REJECTED/NOT REJECTED, STATE WHETHER THERE IS A SIGNIFICANT DIFFERENCE IN MONTHLY TRANSPORTATION COSTS FOR FAMILIES LIVIVING IN THESE CITIES This study source was downloaded by from CourseH on :53:01 GMT -05:00 If you obtain a significant F statistic, run a Post-Hoc Comparison's test on the four means to answer this question. You can select whichever Post-Hoc Comparison procedure you desire. If none exists on your software, do individual t-tests on all pairs of means. a. WHAT POST-HOC COMPARISON TEST USED? b. STATE THE CONCLUSION DR