ANOVA for single-factor experiment
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Johnson's Service Center has devised three potential options available to preferred customers who redeem coupons and buy at least 10 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 two-week trial periods and tracked daily sales receipts from those customers who redeemed their coupons. Results are shown in the table below:
Option A Option B Option C
$453 $492 $467
507 514 525
513 536 516
521 511 500
511 528 435
615 678 462
601 611 411
552 653 674
551 596 512
505 516 559
515 534 624
512 543 711
476 498 512
427 437 416
Harold elected to conduct a one-way ANOVA for his single-factor experiment.
Find the sum of squares, the ss error, the F statistic and critical value at 5% significance, and arrive at the conclusion.
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Solution Summary
The solution conducts ANOVA to test the hypothesis that the means are not the same.
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