Exhibit 13.6 A researcher wants to understand how annual mortgage payment (in dollars)depends on income level and zonal location using a two-way ANOVA without interaction.The data and an incomplete ANOVA table are shown below. Refer to Exhibit 13.6.At the 5% significance level,the conclusion for the hypothesis test about factor A is:
A)Do not reject the null hypothesis,the average mortgage payments differ by income level
B)Do not reject the null hypothesis,cannot conclude the average mortgage payments differ by income level
C)Reject the null hypothesis,the average mortgage payments differ by income level
D)Reject the null hypothesis,cannot conclude the average mortgage payments differ by income level

Question

Exhibit 13.6 A researcher wants to understand how annual mortgage payment (in dollars)depends on income level and zonal location using a two-way ANOVA without interaction.The data and an incomplete ANOVA table are shown below.   Refer to Exhibit 13.6.At the 5% significance level,the conclusion for the hypothesis test about factor A is:
A)Do not reject the null hypothesis,the average mortgage payments differ by income level 
B)Do not reject the null hypothesis,cannot conclude the average mortgage payments differ by income level 
C)Reject the null hypothesis,the average mortgage payments differ by income level 
D)Reject the null hypothesis,cannot conclude the average mortgage payments differ by income level

Quizplus · Accepted Answer

The p-value for factor A is less than 0.05 (0.028), indicating that there is a significant difference in average mortgage payments based on income level. Thus, we reject the null hypothesis and conclude that the average mortgage payments differ by income level.