A recent survey by Genworth Financial Inc., a financial-services company, concludes that the cost of long-term care in the United States varies significantly, depending on where an individual lives (The Wall Street Journal, May 16, 2009). An economist collects data from the five states with the highest annual costs (Alaska, Massachusetts, New Jersey, Rhode Island, and Connecticut) in order to determine if his sample data are consistent with the survey’s conclusions. The economist provides the following portion of an ANOVA table:

a. Complete the ANOVA table. Assume that long-term care costs are normally distributed.
b. Specify the competing hypotheses to test whether some differences exist in the mean long-term care costs in these five states.
c. At the 5% significance level, do mean costsdiffer?

  • CreatedJanuary 28, 2015
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