A car loans officer of a large commercial bank wishes to determine whether the amount of money owned by delinquent car-loan customers when their car is repossessed is related to the type of car owned. Twenty delinquent customers are randomly selected and assigned to 1 of 4 groups, depending on the type of car owned. The outstanding amount of the loan is then recorded. This data (in hundreds of dollars) is presented below.
A car loans officer of a large commercial bank wishes to determine whether the amount of money owned by delinquent car-loan customers when their car is repossessed is related to the type of car owned. Twenty delinquent customers are randomly selected and assigned to 1 of 4 groups, depending on the type of car owned. The outstanding amount of the loan is then recorded. This data (in hundreds of dollars) is presented below.
(a) Using R-Studio, derive the analysis of variance table. Ensure that you provide the code used and relevant output tables.
(b) Do these data provide sufficient evidence to indicate there are significant differences between the mean amounts owed for the 4 types of cars? Test at a significant level of 5 percent. Ensure that you state the null hypothesis(es) and the decision rule in your analysis.
(c) Using R-Studio, carry out relevant tests to determine if the assumptions of the ANOVA analysis were violated. Carefully discuss your findings quoting relevant statistics. (Provide the code used and relevant output tables.)
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