Main Hypothesis
H0: µ1 = µ2 = µ3 No difference among three offices
H1: Not all mean average of sale prices are equal
Where µ1 = the population mean average of sale prices in San Bernacho.
DV = dependent variable
= sales price
IV = independent variable = factor = determinants = attributes
= office

Oneway

[DataSet2] G:\cal_real_estate.sav

Descriptives
Home Price
N / Mean / Std. Deviation / Std. Error / 95% Confidence Interval for Mean / Minimum / Maximum
Lower Bound / Upper Bound
San Bernacho / 5 / 114.6000 / 29.72036 / 13.29135 / 77.6973 / 151.5027 / 85.00 / 160.00
Santa Ranch / 5 / 104.2000 / 25.91718 / 11.59051 / 72.0196 / 136.3804 / 75.00 / 135.00
Rancho Taco / 5 / 146.0000 / 36.64014 / 16.38597 / 100.5053 / 191.4947 / 95.00 / 190.00
Total / 15 / 121.6000 / 34.14842 / 8.81708 / 102.6892 / 140.5108 / 75.00 / 190.00
Test of Homogeneity of Variances
Home Price
Levene Statistic / df1 / df2 / Sig.
.216 / 2 / 12 / .809

Hypothesis:

H0: σ21 = σ22 = σ23
(Population variances of home prices are all equal among three offices.)
H1: Not all variances are equal.
Where σ21 = the population variance of home prices in San Bernacho

Interpretation of Results:

This is a test for one of assumptions for using the ANOVA model. Since p-value (0.809) > 0.05, we accept H0. Chances are 19 out of 20 that data supports that all variances are assumed to be equal (homogeneous). In other words, each city’s home prices are distributed in a similar dispersion (shape). In conclusion, data meets the homogeneity assumption for using the ANOVA model. As a result, we can proceed the ANOVA model for testing the main hypothesis.
ANOVA
Home Price
Sum of Squares / df / Mean Square / F / Sig.
Between Groups / 4735.600 / 2 / 2367.800 / 2.452 / .128
Within Groups / 11590.000 / 12 / 965.833
Total / 16325.600 / 14

Main Hypothesis:

H0: µ1 = µ2 = µ3 = µ4
(Population mean averagesof home prices are equal among 3 cities = No significant difference)
H1: Not all means are equal(significant difference).
Where µ1 = the population mean average of home prices in San Bernacho.

Interpretation of Results:

Since p-value (0.128) > 0.05, we accept H0.
Chances are 19 out 20 that evidence shows that there exists no significant difference among three cities in terms of home prices. Since the ANOVA model’s main hypothesis test results show no statistical significance, no post-hoc analysis is necessary.