Question

A financial services firm is interested in investigating the cost of exporting a company’s products in 4 regions worldwide. The financial analysts collect data of the cost associated with compliance of the economy’s customs regulations to export a shipment in 10 countries (in US$) selected from each of 4 regions. They would like to investigate whether the average costs of exporting differ across the four regions. Which method of analysis is appropriate for answering the question of the financial analysts?

Select one:

a. Levene’s test

b. t-test for dependent samples

c. t-test for independent samples

d. ANOVA

Answer 1

The method of analysis used by the financial analyst to investigate whether the average cost of exporting a company’s products differ across 4 regions worldwide is termed as ANOVA test. An ANOVA test is an approach to see whether study or test results are significant. At the end of the day, they help you to make sense of on the off chance that you have to dismiss the invalid speculation or acknowledge the substitute theory. Essentially, you're testing gatherings to check whether there's a distinction between them.

The t-test is a strategy that decides if two populations are measurably not the same as one another, while ANOVA decides if at least three populations are factually not the same as one another. ANOVA is classified "examination of difference" since it breaks down the all out fluctuation into change inside groups and difference among the groups mean. This is entirely different from Levene's test or other such tests which test whether the changes of the groups are equivalent.

Thus the examination of fluctuation, or ANOVA, is a factual strategy that isolates watched difference information into various parts to use for extra tests. A single direction ANOVA is utilized for at least three gatherings of information, to pick up data about the connection between the reliant and autonomous factors.
The formula for ANOVA is :
F = MST/MSR
Where :
F= ANOVA coefficient
MST= Mean sum of square due to treatment.
MSE = Mean sum of square due to error.