Question: A real estate company operates 25 offices scattered around the
A real estate company operates 25 offices scattered around the southeastern United States. Each office employs six agents. Each month, the CEO receives a summary report of the average value of home sales per agent for every office. Because of the high volatility of real estate markets, there’s a lot of residual variation (se = $285,000). In the current report, the office in Charleston, SC generated the largest average sales at $2,600,000; the office in Macon, GA had the smallest at $2,150,000. Assuming the ANOVA model is reasonable for these data, is this a large range in sales, or should the CEO interpret these differences as the result of random variation?
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