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The Completely Randomized Design

Problem 1: The Completely Randomized Design: One-Way analysis of Variance

The following data represent the nationwide highest yield of different types of accounts:

Money 6-Month 1-Year 2.5-Year 5-Year
Market CD CD CD CD
4.55 4.75 4.94 4.95 5.05
4.50 4.70 4.90 4.91 5.05
4.40 4.69 4.85 4.85 5.02
4.38 4.65 4.85 4.82 5.00
4.38 4.65 4.85 4.80 5.00

a. At the 0.05 level of significance, is there evidence of a difference in the mean yields of the different accounts?

b. If appropriate, determine which accounts differ in mean yields.

Solution Preview

a. At the 0.05 level of significance, is there evidence of a difference in the mean yields of the different accounts?

Null hypothesis:
H0:

Alternate hypothesis:
Ha:

Level of significance:
α = 0.05

Test Statistic:
One factor ANOVA

Mean n Std. Dev
4.7796 4.442 5 0.0782 Money Market
4.7796 4.688 5 0.0415 6-MonthCD
4.7796 4.878 5 0.0409 1-Year CD
4.7796 4.866 5 0.0627 2.5-Year CD
4.7796 5.024 5 0.0251 5-YearCD
4.780 ...

Solution Summary

The solution examines a completely randomized design for a one-way analysis of variance. The differences in the mean yield of the different accounts are analyzed.

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