This week, as Director of Sales for your company, you must determine if the mean prices of four different suppliers are the same. Since prices vary throughout the year, you feel it necessary to take into account the month in which the price quote was given. You should also consider the size of your order. Your newly hired research assistant argues that you can only block on one of the two variables (the month and order size) at a time so that you will have to perform two tests instead of one. How do you respond?
Your assistant is not right and there could be 1 word to prove him wrong:
ANOVA means analysis of variance, which is a statistical tool that allows you to perform statistical testing with more than 1 group. Think about how tedious it is to conduct a t-test with 1 variable. Now imagine doing that multiple times. It ...
The solution discusses how you would determine the mean prices of four different suppliers.