TABLE 11-5
A hotel chain has identically sized resorts in 5 locations. The data that follow resulted from analyzing the hotel occupancies on randomly selected days in the 5 locations.
-Referring to Table 11-5, what should be the decision for the Levene's test for homogeneity of variances at a 5% level of significance?
A) Reject the null hypothesis because the p-value is smaller than the level of significance.
B) Reject the null hypothesis because the p-value is larger than the level of significance.
C) Do not reject the null hypothesis because the p-value is smaller than the level of significance.
D) Do not reject the null hypothesis because the p-value is larger than the level of significance.

Question

TABLE 11-5
A hotel chain has identically sized resorts in 5 locations. The data that follow resulted from analyzing the hotel occupancies on randomly selected days in the 5 locations. 
-Referring to Table 11-5, what should be the decision for the Levene's test for homogeneity of variances at a 5% level of significance?
A) Reject the null hypothesis because the p-value is smaller than the level of significance. 
B) Reject the null hypothesis because the p-value is larger than the level of significance. 
C) Do not reject the null hypothesis because the p-value is smaller than the level of significance. 
D) Do not reject the null hypothesis because the p-value is larger than the level of significance.

Quizplus · Accepted Answer

The p-value for Levene's test is 0.535 which is larger than the level of significance of 5%. Therefore, we do not reject the null hypothesis and conclude that the variances are homogeneous across the 5 locations.

TABLE 11-5 A Hotel Chain Has Identically Sized Resorts in 5 Locations