(a) Null hypothesis (H0): There is no difference in the mean tuition rates for the various regions.
Alternate hypothesis (Ha): There is a difference in the mean tuition rates for the various regions.
(b) The decision rule is to reject the null hypothesis if the calculated F statistic is greater than the critical F value.
(c) To develop an ANOVA table:
- Calculate the mean of each region (Northeast, Southeast, West)
- Calculate the overall mean
- Calculate the sum of squares within groups (SSW)
- Calculate the sum of squares between groups (SSB)
- Calculate the degrees of freedom for between groups and within groups
- Calculate the mean square for between groups (MSB) and within groups (MSW)
- Calculate the F statistic
(d) Calculating the F statistic, we will use the formula F= MSB/MSW and compare it to the critical F value from the F distribution table.
(e) Based on the calculated F statistic and comparing it to the critical F value, we would then make a decision regarding the null hypothesis. If the calculated F statistic is greater than the critical F value, we would reject the null hypothesis and conclude that there is a difference in the mean tuition rates for the various regions.