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Anova Single Factor Experiment

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The data is enclosed in the attachment.

Johnson's Service Center has devised three potential options available to preferred customers who redeem coupons and buy at least 15 gallons of fuel when they stop in. Option A is a flat 3 cents off each gallon. Option B is a combination of 2 cents off plus another $1 discount on the regular price of a $5 deluxe car wash. Option C is a $2 discount on the same $5 deluxe car wash but no reduction in the fuel purchase. The owner, Harold Johnson, ran each option on three different trial periods and tracked daily sales receipts from those customers who redeemed their coupons. The data collected is (masked to protect the interests of Mr. Johnson) shown in the table below:

Harold elected to conduct a one-way ANOVA for his single-factor experiment. The results of ANOVA is as follows. Some of the information is missing.

a. Please fill in the missing information.

b. What would be the appropriate hypotheses - Null and Alternate Hypotheses?

c. What decision would Harold make about the hypotheses? Why?

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Solution Summary

It provides an example of hypothesis testing.

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  • BSc , Wuhan Univ. China
  • MA, Shandong Univ.
Recent Feedback
  • "Your solution, looks excellent. I recognize things from previous chapters. I have seen the standard deviation formula you used to get 5.154. I do understand the Central Limit Theorem needs the sample size (n) to be greater than 30, we have 100. I do understand the sample mean(s) of the population will follow a normal distribution, and that CLT states the sample mean of population is the population (mean), we have 143.74. But when and WHY do we use the standard deviation formula where you got 5.154. WHEN & Why use standard deviation of the sample mean. I don't understand, why don't we simply use the "100" I understand that standard deviation is the square root of variance. I do understand that the variance is the square of the differences of each sample data value minus the mean. But somehow, why not use 100, why use standard deviation of sample mean? Please help explain."
  • "excellent work"
  • "Thank you so much for all of your help!!! I will be posting another assignment. Please let me know (once posted), if the credits I'm offering is enough or you ! Thanks again!"
  • "Thank you"
  • "Thank you very much for your valuable time and assistance!"
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