In: Math
PLEASE DO BY HAND AND NOT EXCEL
1.A car dealer believes that average daily sales for four different dealerships in four separate states are equal. A random sample of days results in the following data on daily sales:
Ohio New York West Virginia Pennsylvania
3 10 3 20
2 0 4 11
6 7 5 8
4 8 2
4 0 14
7
2
Use ANOVA to test this claim at the 0.05 level.
H0: Null Hypothesis: ( Average daily sales for four different dealerships in four separate states are equal.)
HA: Alternative Hypothesis: (At least one mean is different from other three means) ( Average daily sales for four different dealerships in four separate states are not equal.)
From the given data, the following Table is calculated:
State | N | Mean | Std. Dev. |
Ohio | 7 | 4 | 1.9149 |
New York | 5 | 5 | 4.6904 |
West Virginia | 3 | 4 | 1 |
Pennsylvania | 5 | 11 | 6.7082 |
From the above Table, ANOVA Table is calculated:
Source of Variation | Degrees of Freedom | Sum of Squares | Mean Square | F - Stat | P - Value |
Between Groups | 3 | 170 | 170/3=56.6667 | 56.6667/18.25=3.105 | 0.0561 |
Within Groups | 16 | 292.0002 | 292.0002/16=18.25 | ||
Total | 19 | 462.0002 |
F - Stat = 56.6667/18.25=3.105
Degrees of Freedom for numerator = 3
Degrees of freedom for denominator = 16
By Technology, P - Value = 0.0561
Since P - Value = 0.0561 is greater than = 0.05, the difference is not significant. Fail to reject null hypothesis.
Conclusion:
The data support the claim that Average daily sales for four different dealerships in four separate states are equal.