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Statistics - Hypothesis Tests - ANOVA

Cris Turlock owns and manages a small business in San Francisco, CA. The business provides breakfast and brunch food, via carts parked along sidewalks, to people in the business district of the city.

Being an experienced businessperson, Cris provides incentives for the salespeople operating the food carts. This year, she plans to offer monetary bonuses to her salespeople based on their individual mean daily sales. Her first task is to see if there is a significant difference in the mean daily sales among the different salespeople. She chooses a "sample" of days for each salesperson and records the sales for each day. She then runs a one way independent samples ANOVA test to determine whether or not she can conclude that at least one salesperson's performance is significantly different from the others. (Otherwise, she'll split the bonuses evenly among all the salespeople.) In her ANOVA, the "groups" are the different salespeople, and the variable of interest is the daily sales amount, in dollars.


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