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Computation of the F-Value in the Analysis of Variance

The following ANOVA summary data are the result of a regression with sales per year (dependent variable) as a function of promotion expenditures per year (independent variable) for a toy company.

F = ?
MSA = 34,276
MSE = 4,721

The degrees of freedom are 1 for the numerator and 19 for the denominator. Is the relationship statistically significant at alpha= 05? Comment on your answer.

Solution Preview

In your problem MSR could be 34,276. I am sure the MSE is 4721. By computation we get the F:
F = MSR/MSE
F = 34276/4721
F = 7.26

And based on your information on the degrees of freedom: 1 (numerator) and 19 (denominator)
Now you need to have tabular values of F.

In the critical values ...

Solution Summary

The solution computes for the F-value based on the result of a regression with sales per year and promotion expenditures per year for a toy company. Interpretation of the F-value is shown in the attached spreadsheet file.

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