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    Hypothesis Testing & ANOVA - Real World Example

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    1. After reading about how the ANOVA is used, and the value many researchers place on it, describe a situation, preferably from your work place, where this style of testing would be or could have been appropriate.

    2. The Chi-square procedure has many uses in our daily living. Look around your organization or in your community and find a good practical use for this very powerful technique.

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    Solution Preview

    (1) ANOVA

    The purpose of conducting ANOVA is to see if there is any difference between two or more groups on some variable. ANOVA is a general technique that can be used to test the hypothesis that the means among two or more groups are equal, under the assumption that the sampled populations are normally distributed.
    A one-way analysis of variance requires that the independent variable specify groups or categories and the dependent variable be interval level.

    ANOVA with 3 Samples: (A Business Example)

    a. Write a brief statement of purpose of the study

    Three different aisle locations were considered: Front, Middle, and Rear. A random sample of 18 stores was selected, with 6 stores randomly assigned to each aisle location. At the end of a one month trial period, the sales volumes (in thousands of dollars) of the product in each store were recorded to see if there is a significant difference in the mean sales among the various aisle locations.
    b. Define the population
    The stores of a particular retail-chain company in a big city

    c. State how the sample was selected

    18 stores were randomly selected from the retail chain in a big city and 6 each were randomly assigned to the aisle locations.
    d. What a value did ...

    Solution Summary

    Hypothesis testing and ANOVA tests are used for real world examples. A complete, neat and step-by-step solution is provided in the attached file.