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First National Bank employs three real estate appraisers whose job is to establish a property's market 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.
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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