Question
Northwest Real Estate manages more than five hundred residential apartments in the Pacific Northwest. The company wants to understand if there is a significant difference
Northwest Real Estate manages more than five hundred residential apartments in the Pacific Northwest. The company wants to understand if there is a significant difference among the average heating bills of all apartments in the city using three forms of heating (Natural Gas, Central Electric, Heat Pump). In a recent study, heating bills for a selected sample of apartments in a city using various forms of heating are recorded (in $1000). Data provided in table.
Natural Gas | Central Electric | Heat Pump |
84 | 95 | 85 |
64 | 60 | 93 |
93 | 89 | 90 |
85 | 85 | 92 |
77 | 91 | 90 |
88 | 96 | 92 |
71 | 90 | 80 |
Part A: Specify the null and alternative hypotheses.
Part B: What is the conclusion at 5% significance level? Also provide a complete interpretation of the result (i.e., what the result means in the context of the problem).
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