Question

In an effort to recieve faster payments of invoicea a company introduces 2 discount plans

one set of customers is given 2 percent discount

another set is given one percent discount

third set is not offered any incentive

2%discount

11, 16, 9, 14, 10

1%discount

21, 15, 23, 10, 16

no discount

14, 11, 18, 16, 21

what is the F-value? can we say that offers get faster payments?

1) F-value=1.073

2) F-vaue=3.910

3)F-value=0.885

4)F-value=2.121

Answer 1

Answer: In an effort to recieve faster payments of invoicea a company introduces 2 discount plans.

one set of customers is given 2 percent discount, another set is given one percent discount, third set is not offered any incentive.

Solution:

The hypothesis test:

Null hypothesis, Ho: μ1 = μ2 = μ3

Alternative hypothesis, Ha: not all means are equal.

From the given data,

	2%discount	1%discount	No discount	Total
n	5	5	5	15
∑x	60	85	80	225
x̄	12	17	16	15
∑x^2	754	1551	1338	3643
Std.Dev.	2.9155	5.1478	3.8079	4.3753

ANOVA Table:

Source	df	SS	MS	F	P
Residual	2	70	35	2.121	0.1626
Error	12	198	16.5
Total	14	268

Therefore, the F value = 2.121.

The option 4) is correct answer.

Since P-value (0.1626) > 0.05 significance level.

We fail to reject the null hypothesis Ho.

There is insufficient evidence to conclude that not all means are equal. Therefore, offers does not get faster payments.