First national bank employs three real estate appraisers


Question: First National Bank employs three real estate appraisers whose job is to establish a property's mark et value before the bank offers a mortgage to a prospective buyer. It is imperative that each appraiser values a property with no bias. S up pose First National Bank wishes to check the consistency of the recent values that its appraisers have established. The bank asked the three appraisers to value (in $1,000s) three different types of homes: a cape, a colonial, and a ranch. The results are shown in the accompanying tab le and can also be found on the text website, labeled Houses.

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a. Use Excel to generate the appropriate ANOVA table.

b. At the 5 % significance level, can you conclude that average values differ by appraiser? Should the bank be concerned with appraiser inconsistencies?

c. At the 5 % significance level, can you conclude that average values differ by house type?

d. If average values differ by house type, use Tukey's HSD test at the 5 % significance level to determine which averages differ.

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Basic Statistics: First national bank employs three real estate appraisers
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