Question

            

The challenge for companies to be competitive is to reach international markets. To explore foreign market, 10 countries were selected from each of four global regions. The data on the cost associated with importing a cargo of goods by sea transport in these countries (in US$ per container) was collected.

1. What is the response variable in this experiment?                                                                 

2. Name the factor in this experiment and the number of levels of the factor.                         

3. Complete the ANOVA table. (Full marks will be awarded for showing the calculations).   

ANOVA

Source of Variation	SS	Df	MS	F	p - value
Between Groups	785464
Within Groups			41049
Total

4. At the 0.05 level of significance, is there evidence of a difference in the mean cost of importing across the four global regions? (Show all steps and the needed calculations of hypothesis testing)     (4   marks)                                               

Answer 1

a. The respose variable is the cost associated with the import of a standardised cargo of goods by sea transport in these countries (in US$ per container) was collected.

b. The factor in this experiment is the global region Hence, have  four global regions

c.

number of groups k	4
total number of subjects N	40
Source	DF	SS	MS	F Stat	P value
Between Groups	3	785464	261821.3	6.378263	0.001403
Within Groups	36	1477764	41049
Total	39	2263228

d.

P Value = 0.001403<0.05 Reject Ho in favour of H1 at 5% level of significance

Ho : No difference in mean vs H1 : Not Ho

there is significant difference in the mean cost of importing across the four global regions