A real estate broker is interested in determining whether there is a difference

Question

A real estate broker is interested in determining whether there is a difference in the mean number of days a home stays on the market before selling based on which area of the city it is located in. However, she is also concerned that the price of the house may be an issue in determining how long it takes to sell a house, so she wants to control for this. To carry out the test, she plans to randomly select one house from each part of the city in each price range. The following data show the number of days for the sample of houses selected. North South East 42 40 50 $120,000

Explanation / Answer

We have used two way ANOVA model for this problem one for price factor and other for location factor

Also we have used MINITAB software for it. the answer and the ANOVA table is

Two-way ANOVA: y versus price factor, location

Source DF SS MS F P
price factor 4 701.30 175.325 0.87 0.510
location 3 1142.95 380.983 1.89 0.185
Error 12 2420.30 201.692
Total 19 4264.55

S = 14.20 R-Sq = 43.25% R-Sq(adj) = 10.14%

here we can say that all the factor has p-value>0.05 hence we can comment that there is insignifacant effect of price and location. Also we can comment thatthere is no factor effecting the data.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.