Question 3

A business organization is planning to build a new store at one offourdifferent sites. An important factor in deciding the location of the store is the average annual household income of the residents in the four areas. Various residents in each of the four areas are asked what their annual household incomes are. The data obtained are given in the following table:

AnANOVAtest at the0.05 level of significancewas conducted, and the table is shown below.

(a)Fill in the missing values in the ANOVA table. Show all working.

(b)At the5% level of significance, is there evidence of anydifferencein theaverage annual household income of the residents in the four areas?Test this using the critical value method, including all6 hypothesis testing steps.

(c)Name an appropriate test to analyse which average annual household income is different.