Question

In: Statistics and Probability

The dataset below contains the average sales for five stores across four different seasons. Which season...

The dataset below contains the average sales for five stores across four different seasons. Which season was the best of all for sales? Explain your answer.
Store Fall Winter Spring Summer
1 $            64,866 $             51,382 $              67,480 $                67,282
2 $            55,848 $             70,963 $              68,719 $                64,741
3 $            74,985 $             71,475 $              50,981 $                64,963
4 $            71,215 $             64,265 $              65,634 $                59,487
5 $            67,414 $             74,796 $              57,839 $                74,481

Solutions

Expert Solution

Null and Alternative Hypotheses

The following null and alternative hypotheses need to be tested:

Ho: μ1 = μ2 = μ3 = μ4

Ha: Not all means are equal

The above hypotheses will be tested using an F-ratio for a One-Way ANOVA.

ANOVA

Group 1

Group 2

Group 3

Group 4

64866

51382

67480

67282

55848

70963

68719

64741

74985

71475

50981

64963

71215

64265

65634

59487

67414

74796

57839

74481

Sum =

334328

332881

310653

330954

Average =

66865.6

66576.2

62130.6

66190.8

=∑​Xij2​=

22565570906

22508964759

19528085599

22024578504

St. Dev. =

7254.802

9314.139

7533.729

5442.161

SS =

210528589.2

347012726.8

227028317.2

118468480.8

n =

5

5

5

5

The total sample size is N = 20

The total degrees of freedom are: dftotal​=20−1=19

Also, the between-groups degrees of freedom are dfbetween​=4−1=3, and the within-groups degrees of freedom are:

dfwithin​=dftotal​−dfbetween​=19−3=16

total sum of values and the grand mean.

mean sum of squares

the F-statistic is computed as follows:

Rejection Region

Based on the information provided, the significance level is α=0.05, and the degrees of freedom are df1​=3 and df2​=3, therefore, the rejection region for this F-test is R={F:F>Fc​=3.239}.

Decision about the null hypothesis

Since it is observed that F=0.438 ≤ Fc​=3.239, it is then concluded that the null hypothesis is not rejected.

Conclusion

It is concluded that the null hypothesis Ho is not rejected. Therefore, there is not enough evidence to claim that not all 4 population means are equal, at the α=0.05 significance level. Hence we conclude that there is no significant difference between the sales in different seasons


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