PhoneEx provides call center services for many different companies. A large increase in its business has made it necessary to establish a new call center. Four cities are being considered—Little Rock, Wichita, Tulsa, and Memphis. The new center will employ approximately 1,500 workers, and PhoneEx will transfer 75 people from its Omaha center to the new location. One concern in the choice of where to locate the new center is the cost of housing for the employees who will be moving there. To help determine whether significant housing cost differences exist across the competing sites, PhoneEx has asked a real estate broker in each city to randomly select a list of 33 homes between 5 and 15 years old and ranging in size between 1,975 and 2,235 square feet. The prices (in dollars) that were recorded for each city are contained in the file called PhoneEx.
a. At the 0.05 level of significance, is there evidence to conclude that the average price of houses between 5 and 15 years old and ranging in size between 1,975 and 2,235 square feet is not the same in the four cities? Use the p -value approach.
b. At the 0.05 level of significance, is there a difference in average housing price between Wichita and Little Rock? Between Little Rock and Tulsa? Between Tulsa and Memphis?
c. Determine the sample size required to estimate the average housing price in Wichita to within $500 with a 95% confidence level. Assume the required parameters’ estimates are sufficient for this calculation.