Question

In: Statistics and Probability

An executive at the home office of Big Rock Life Insurance is considering three branch managers...

An executive at the home office of Big Rock Life Insurance is considering three branch managers as candidates for promotion to vice president. The branch reports include records showing sales volume for each salesperson in the branch (in hundreds of thousands of dollars). A random sample of these records was selected for salespersons in each branch. All three branches are located in cities in which per capita income is the same. The executive wishes to compare these samples to see if there is a significant difference in performance of salespersons in the three different branches. If so, the information will be used to determine which of the managers to promote.

Branch Managed by Adams Branch Managed by McDale Branch Managed by Vasquez
7.8 8.6 6.3
6.6 10.9 8.1
10.7/ 11.1 10.7
10.8 9.2 11.6
9.3
10.2


(b) Find

SSTOT, SSBET, and SSW

and check that

SSTOT = SSBET + SSW.

(Round your answers to three decimal places.)

SSTOT

=

SSBET

=

SSW

=


Find

d.f.BET, d.f.W, MSBET, and MSW.

(Round your answers to three decimal places.)

d.f.BET

=

d.f.W

=

MSBET

=

MSW

=


Find the value of the sample F statistic. (Round your answers to three decimal places.)


What are the degrees of freedom?
(numerator)=
(denominator)=

(f) Make a summary table for your ANOVA test. (Round your answers to three decimal places.)

Source of
Variation
Sum of
Squares
Degrees of
Freedom
MS F
Ratio
P-Value Test
Decision
Between groups ---Select--- P-value > 0.100 0.050 < P-value < 0.100 0.025 < P-value < 0.050 0.010 < P-value < 0.025 0.001 < P-value < 0.010 P-value < 0.001 ---Select--- Do not reject H0. Reject H0.
Within groups
Total

Solutions

Expert Solution

Adams McDale Vasquez Total
Sum 55.4 39.8 36.7 131.9
Count 6 4 4 14
Mean, Sum/n 9.233333 9.95 9.175
Sum of square, Ʃ(xᵢ-x̅)² 14.53333 4.61 17.6275

b)

SS(between) = (Sum1)²/n1 + (Sum2)²/n2 + (Sum3)²/n3 - (Grand Sum)²/ N = 1.573

SS(within) = SS1 + SS2 + SS3 = 36.771

SS(total) = SS(between) + SS(within) = 38.344

Number of treatment, k = 3

Total sample Size, N = 14

df(between) = k-1 = 2

df(within) = N-k = 11

df(total) = N-1 = 13

MS(between) = SS(between)/df(between) = 0.786

MS(within) = SS(within)/df(within) = 3.343

F = MS(between)/MS(within) = 0.235

--

df(numerator) = 2

df(denominator) = 11

p-value = F.DIST.RT(0.2352, 2, 11) = 0.7943

--

ANOVA
Source of Variation SS df MS F P-value Test decision
Between Groups 1.573 2 0.786 0.235 P-value > 0.100 Do not reject
Within Groups 36.771 11 3.343
Total 38.344 13

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