An Inferential Statistic of Housing Problems Assignment

An Inferential Statistic of Housing Problems - Assignment Example The null hypothesis of equal variances is rejected and it is concluded that there is a difference between the variances in the population.It is called heteroscedasticity. Some of the procedures typically assuming homoscedasticity are the ANOVA, t-tests.Levene's test is often used before a comparison of means. When Levene's test shows significance, one should switch to generalized tests, free from homoscedasticity assumptions. Since the p-value is less than 0.05 ( 0.000) in this case hence homoscedasticity or equal variances cannot be assumed. The computed t statistic is 6.95 which is more than the assumed or critical t statistic of 6.82 for assuming equal variance. The degree of freedom is hence retained as 957.51 and the p values as stated is