A real estate development firm wants to test whether there are differences in the average price of a lot of a given size in the center of each of four cities:
Philadelphia, New York, Washington, and Baltimore. Random samples of 52 lots in Philadelphia, 38 lots in New York, 43 lots in Washington, and 47 lots in Baltimore lead to a computed test statistic value of 12.53.
Do you believe that average lot prices in the four cities are equal? How confident are you of your conclusion? Explain.