Case Study: Family Incomes.
A local council is interested in comparing family incomes of four of its
suburbs for policy decisions. Local council has collected data on family
incomes from random samples of families from the four suburbs.
The data set is organised as follows:
Column 1; the annual family income in thousands of dollars.
Column 2; the suburb (1, 2, 3, 4)
Assignment No. 2
Tasks:
1. Local Council wants to determine whether there is a significant
difference in the family incomes in four suburbs.
Using an appropriate test determine whether there is a significant
difference of the family incomes of the four suburbs using the given data
set at 5% level of significance.
2. Some members of the Local Council believe that (i) the average family income of suburb1 is higher than the average
family income of suburb 4, and
(ii) there is no significant difference between the average family incomes
of suburbs 3 and 4.
Use the data set to determine whether these beliefs are justified at
level of significance of 1%.
3. Write a report to the Local Council incorporating your findings.
Case Study: Family Incomes
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