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Hypothesis Testing and ANOVA Analysis

Conclude if there is a difference in the mean income.

The null hypothesis is that the mean scores are the same for the three ratings.

The null hypothesis is:
H0: µ1 = µ2 = µ3
The alternate hypothesis is that the mean scores are not all the same for the three ratings.

H1: Treatment means are not all the same or "at least two mean scores are not equal." If the null hypothesis is not rejected, we conclude that there is no difference in the mean income based on the developer's findings.

The level of significance is .05.

The test statistic follows the F distribution.
Degrees of freedom in the numerator = k - 1 = 3 - 1 = 2. Degrees of freedom in the denominator = n - k = 12 - 3 = 9.

The decision rule is to reject H0 if the computed value of F > 4.26.
Step 5: Select the sample, perform the calculations, and make a decision.
Tides Hotel & Casino Golden Hotel & Casino Jackpot Hotel & Casino Total
2003 $10,653 $6,599 $866
2004 $12,988 $7,341 $1,192
2005 $15,045 $8,931 $1,364
2006 $19,218 $10,225 $1,819

Column Total $57,904 $33,096 $5,241 $96,241
n 4 4 4 12
Mean $14,476 $8,274 $1,310.25 $8,020.10
The grand mean is $8,020.10.

Source SS df MS F p-value
Treatment 347,060,788.17 2 173,530,394.083 32.52 .0001

Error 48,027,018.75 9 5,336,335.417

Total 395,087,806.92 11

Interpret the results of your ANOVA and the significance of the results to the organization as a whole

Solution Preview

As an applied statistician let's see if we can shed a little light on the casino situation. As a side bar note, never work at the jackpot hotel :-) However, before attempting to present information needed to answer your query about income differences let me first give you a little important information with respect to the proper way of stating a null and alternate hypothesis. All null hypotheses must be stated that "no statistically significant differences and or effects" exist among the groups assessed. The null must also include a ...

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