TABLE 10-17
A realtor wants to compare the mean sales-to-appraisal ratios of residential properties sold in four neighborhoods (A, B, C, and D). Four properties are randomly selected from each neighborhood and the ratios recorded for each, as shown below.
A: 1.2, 1.1, 0.9, 0.4 C: 1.0, 1.5, 1.1, 1.3
B: 2.5, 2.1, 1.9, 1.6 D: 0.8, 1.3, 1.1, 0.7
Interpret the results of the analysis summarized in the following table:

-Referring to Table 10-17, the null hypothesis for Levene's test for homogeneity of variances is
A) H₀: μA = μB = μC = μD.
B) H₀: MA = MB = MC = MD.
C) H₀: σA² = σB² = σC² = σD².
D) H₀: πA = πB = πC = πD.

Question

TABLE 10-17
A realtor wants to compare the mean sales-to-appraisal ratios of residential properties sold in four neighborhoods (A, B, C, and D). Four properties are randomly selected from each neighborhood and the ratios recorded for each, as shown below.
A: 1.2, 1.1, 0.9, 0.4 C: 1.0, 1.5, 1.1, 1.3
B: 2.5, 2.1, 1.9, 1.6 D: 0.8, 1.3, 1.1, 0.7
Interpret the results of the analysis summarized in the following table:
 
-Referring to Table 10-17, the null hypothesis for Levene's test for homogeneity of variances is
A) H₀: μA = μB = μC = μD. 
B) H₀: MA = MB = MC = MD. 
C) H₀: σA² = σB² = σC² = σD². 
D) H₀: πA = πB = πC = πD.

Quizplus · Accepted Answer

Levene's test for homogeneity of variances tests whether the variances of the populations from which the samples were drawn are equal. Therefore, the null hypothesis for Levene's test is H₀: σA² = σB² = σC² = σD². Choice A is incorrect because it represents the null hypothesis for a test of the equality of means, not variances. Choice B is incorrect because it uses the wrong symbols - MA, MB, MC, and MD have not been defined in the problem. Choice D is incorrect because it refers to proportions, which are not relevant in this problem.

TABLE 10-17 a Realtor Wants to Compare the Mean Sales-To-Appraisal Ratios of Ratios