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Analysis of variance: management

Emma's On-the-Go, a large convenience store, has to decide where in the store to put its magazine rack. The manager at Emma's experiments with a selection of different locations, choosing a sample of days at each location. Each day, the manager records the amount of money brought in from the sale of magazines.

It's possible to test whether there is a difference in the mean daily sales for the different locations by doing a one-way, independent-samples ANOVA test. The variable of interest is the daily sales, in dollars, from magazines at Emma's. In the ANOVA test, the "groups" are the different locations, and the "samples" are the daily magazine sales actually examined by the manager.

The following ANOVA table gives a summary of such an ANOVA test. Fill in the missing cell in the table (rounded to two decimal places), and then answer the questions.

Source of variation Degrees of Freedom Sum of squares Mean square f stat.
Treatments
(Between Groups) 5 3108.8 621.8 __?

Error
(within Groups) 258 127800.3 495.4

Total 263 130909.1

How many locations were looked at by the management? ___

For the Anova Test, it is assumed that the variance
is the same for each population of daily sales
(that is, for the populations of daily sales
for each location). What is an unbiased estimate
of this common population variance based on the sample
variances? _____

Using the 0.05 level of significance, what is the critical value of the F statistic for the ANOVA test? Round your ansewer to at least two decimal places?____

Can we conclude, using the 0.05 level of significance, that there is a difference in the mean daily sales among the different locations? yes or no

Solution Preview

The following ANOVA table gives a summary of such an ANOVA test. Fill in the missing cell in the table (rounded to two decimal places), and then answer the questions.

Source of variation Degrees of Freedom Sum of squares Mean square f stat.
Treatments
(Between Groups) 5 ...

Solution Summary

The solution provides step by step method for the calculation of test statistic and P value for ANOVA. Formula for the calculation and Interpretations of the results are also included.

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