# Chapter 12

Analysis of Variance
True/False
1. The F distribution's curve is positively skewed.
Difficulty: Medium
Goal: 1

2. The test statistic used in ANOVA is Student's t.
Difficulty: Easy
Goal: 1

3. There is one, unique F distribution for a F-statistic with 29 degrees of freedom in the numerator and 28
degrees of freedom in the denominator.
Difficulty: Medium
Goal: 1
AACSB: AS

4. One characteristic of the F distribution is that F cannot be negative.
Difficulty: Easy
Goal: 1

5. One characteristic of the F distribution is that the computed F can only range between -1 and +1.
Difficulty: Easy
Goal: 1

6. The F distribution is positively skewed and its values may range from 0 to plus infinity.
Difficulty: Easy
Goal: 1

7. The shape of the F distribution is determined by the degrees of freedom for the F-statistic, one for the
numerator and one for the denominator.
Difficulty: Medium
Goal: 1

8. Unlike Student's t distribution, there is only one F distribution.
Difficulty: Easy
Goal: 1

9. Like Student's t distribution, a change in the degrees of freedom causes a change in the shape of the F
distribution.
Difficulty: Easy
Goal: 1

Test Bank, Chapter192
12

10. If the computed value of F is 0.99 and the critical value is 3.89, we would not reject the null
hypothesis.
Difficulty: Medium
Goal: 2

11. For the hypothesis test, H o : σ 1  σ 2 , with n1 = 10 and n2 = 10, the F-test statistic is 2.56. At the
0.01 level of significance, we would reject the null hypothesis.
Difficulty: Hard
Goal: 2
AACSB: AS
2

2

12. For the hypothesis test, H o : σ 1  σ 2 , with n1 = 4 and n2 = 4, the F-test statistic is 50.01. At the
0.01 level of significance, we would reject the null hypothesis.
Difficulty: Hard
Goal: 2
2

2

13. For the hypothesis test, H o : σ 1  σ 2 , with n1 = 7 and n2 = 7, the F-test statistic is 2.56. At the
0.05 level of significance, we would reject the null hypothesis.
Difficulty: Hard
Goal: 2
2

2

14. For the hypothesis test, H o : σ 1  σ 2 , with n1 = 9 and n2 = 9, the F-test statistic is 4.53. At the
0.05 level of significance, we would reject the null hypothesis.
Difficulty: Hard
Goal: 2
2

2

15. To employ ANOVA, the populations being studied must be approximately normally distributed.
Difficulty: Easy
Goal: 3

16. To employ ANOVA, the populations should have approximately equal standard deviations.
Difficulty: Easy
Goal: 3

17. In an ANOVA table, k represents the total number of sample observations and n represents the total
number of treatments.
Difficulty: Medium
Goal: 4

18. In an ANOVA table, k represents the number of treatments, b represents the number of blocks, and n
represents the total number of sample observations.
Difficulty: Medium
Goal: 4
19. The alternate hypothesis used in ANOVA is 1   2   3 .
Difficulty: Medium
Goal: 5

193

Test Bank, Chapter 12

Lind/Marchal/Wathen.Statistical Techniques in Business & Economics. 13/e 194 .

seven Visa and five Discover sales were recorded. The store used ANOVA to test if the mean sales for each credit card were equal. Answer: B Difficulty: Easy Goal: 1 41. D) simultaneously compare several population means. Answer: D Difficulty: Medium Goal: 3 44. Visa and Discover. 15 in the denominator D) 6 in the numerator. What are the degrees of freedom for the F statistic? A) 18 in the numerator. C) compare population proportion. An F statistic is: A) a ratio of two means. 15 in the denominator Answer: C Difficulty: Medium Goal: 4 AACSB: AS 197 Test Bank. What distribution does the F distribution approach as the sample size increases? A) Binomial B) Normal C) Poisson D) Exponential Answer: B Difficulty: Medium Goal: 1 AACSB: AS 42. B) compute t test. Chapter 12 . A large department store examined a sample of the 18 credit card sales and recorded the amounts charged for each of three types of credit cards: MasterCard. Six MasterCard sales. 3 in the denominator B) 3 in the numerator. C) the difference between three means. 18 in the denominator C) 2 in the numerator. B) a ratio of two variances.Multiple Choice 40. D) a population parameter. Which statement is correct about the F distribution? A) Cannot be negative B) Cannot be positive C) Is the same as the t distribution D) Is the same as the z distribution Answer: A Difficulty: Medium Goal: 1 43. Analysis of variance is used to A) compare nominal data.

Answer: D Difficulty: Easy Goal: 5 199 Test Bank. A third group watched a television presentation. A high of 10 was possible.48. and a fourth group was divided into small discussion groups. Some employees were given programmed instruction booklets and worked through the course at their own pace. An electronics company wants to compare the quality of their cell phones to the cell phones from three competitors.24 D) 5.96 C) 3. what is the critical value? A) 1.29 Answer: D Difficulty: Medium Goal: 4 49. Other employees attended lectures.00 B) 1. A sample of five tests was selected from each group. four different methods were tried.01 level. In ANOVA. C) The total number of phones D) The four companies. an F statistic is used to test a null hypothesis such as: 2 2 2 A) H o : σ 1  σ 2  σ 3 2 2 2 B) H o : σ 1  σ 2   3 C) H o : μ 1  μ 2  μ 3 D) H o : μ 1  μ 2  μ 3 Answer: C Difficulty: Easy Goal: 4 50. B) the average number of defects. the treatments would be defined as: A) the number of cell phones sampled. The test grade results were: S a m p le N u m b e r 1 2 3 4 5 P ro g ra m m e d In s tru c tio n 6 7 6 5 6 L e c tu re 8 5 8 6 8 TV 7 9 6 8 5 G ro u p D is c u s s io n 8 5 6 6 5 At the 0. Chapter 12 . In an effort to determine the most effective way to teach safety principles to a group of employees. If ANOVA were used to compare the average number of defects. They sample 10 phones from each company and count the number of defects for each phone.

C) doing an additional ANOVA.6 3 0 .6 1 7 . Answer: B Difficulty: Easy Goal: 7 Statistical Techniques in Business & Economics.6 .4 2 1 . B) decrease the error sum of squares. B) adding another treatment. D) doing a t test. Answer: A Difficulty: Medium Goal: 6 55. If an ANOVA test is conducted and the null hypothesis is rejected. what does this indicate? A) Too many degrees of freedom B) No difference between the population means C) A difference between at least one pair of population means D) None of the above Answer: C Difficulty: Medium Goal: 5 Scrambling: Locked 53. The test statistic was computed to be 4. D) decrease the treatment sum of squares.4 2 2 . In a two-way ANOVA.51. we can find which means are different by A) constructing confidence intervals.0 1 6 . In ANOVA analysis. a blocking variable is used to A) increase the error sum of squares. when the null hypothesis is rejected.5 3 3 . Sample data for each method are: S a m p le N u m b e r 1 2 3 L i n d 's M e t h o d 1 6 .1 M a n l e y 's 18 19 17 M e th o d .4 3 1 . What can we conclude at the 0.6 Goal: 5 52. Several employees have submitted different methods of assembling a subassembly.4 . C) increase the treatment sum of squares. A preliminary study of hourly wages paid to unskilled employees in three metropolitan areas was conducted. 13/e 200 .05 level? A) Mean hourly wages of unskilled employees all areas are equal B) Mean hourly wages in at least 2 metropolitan areas are different C) More degrees of freedom are needed D) None of these is correct Answer: B Difficulty: Medium Goal: 5 Scrambling: Locked 54. 9 from Area B and 12 from Area C. Seven employees were included from Area A. Lind/Marchal/Wathen.9 How many treatments are there? A) 3 B) 4 C) 12 D) 0 Answer: B Difficulty: Medium M in u te s R e q u ire d fo r A s s e m b ly S z a b o 's M e t h o d C a r l 's M e t h o d 2 2 .91.

What is the assumption? ________________ Answer: The population variances are equal Difficulty: Medium Goal: 2 201 Test Bank. What is the shape of the F distribution? ______________________ Answer: positively skewed Difficulty: Medium Goal: 1 59. The calculated F value must be equal to or greater than _________ . Chapter 12 . Answer: continuous Difficulty: Medium Goal: 1 58. The F distribution is a ______________ distribution. What test statistic is used in ANOVA? ________________ Answer: F statistic Difficulty: Easy Goal: 1 63. When comparing two population variances we use the ___________ distribution. In a two-way ANOVA with interaction. B) a blocking factor is present.56. What are the minimum and maximum of values of an F distribution? _______ and _______ Answer: zero and positive infinity Difficulty: Medium Goal: 1 60. The F-distribution is useful when testing a requirement of two-sample tests of hypothesis. D) both factors have a combined effect on the response variable. Answer: zero (0) Difficulty: Medium Goal: 1 64. Answer: F Difficulty: Medium Goal: 1 62. Answer: D Difficulty: Easy Goal: 8 Fill-in-the-Blank 57. a significant interaction term indicates that A) the response variable is interactive. What test statistic is used to compare two variances? ________________ Answer: F statistic Difficulty: Easy Goal: 2 65. C) both factors are unrelated. What kind of values can the F distribution NOT have? ______________ Answer: negative values Difficulty: Medium Goal: 1 61.

13/e 202 .Statistical Techniques in Business & Economics. Lind/Marchal/Wathen.

47 Answer: B Difficulty: Hard Goal: 5 87.47 Answer: A Difficulty: Hard Goal: 5 88.80 B) 58. What is the critical value of F at the 5% level of significance? A) 19.39 Answer: C Difficulty: Hard Goal: 5 89. What is the sum of squares for the treatment? A) 67.61 Answer: B Difficulty: Hard Goal: 5 205 Test Bank. Chapter 12 .34 D) 23. P r o c e s s T o ta ls ( \$ 1 0 0 ’s ) S a m p le S iz e S u m o f S q u a re s P ro c ess 1 137 10 1893 P ro c e ss 2 108 10 1188 P ro c e ss 3 107 10 1175 T o ta l 352 30 4256 86.35 D) 3.80 B) 58.34 D) 23.07 C) 149.39 D) 4.00 C) 3.07 C) 149.49 C) 5. A summary of the findings is shown below. The management ordered a study of the production costs to see if there is a difference among the three processes. What is the sum of squares of the error? A) 67.46 B) 5. What is the critical value of F at the 1% level of significance? A) 99.Multiple Choice Use the following to answer questions 86-96: A manufacturer of automobile transmissions uses three different processes.45 B) 3.

Lind/Marchal/Wathen.56 D) 13.168 C) 11.9 D) 29.151 C) 33.9 D) 29.50 Answer: C Difficulty: Hard Goal: 5 Statistical Techniques in Business & Economics.086 B) 1. What are the degrees of freedom for the error sum of squares? A) 3 B) 10 C) 27 D) 30 Answer: C Difficulty: Medium Goal: 5 92.151 C) 33. What is the mean square for error? A) 2.035 Answer: A Difficulty: Hard Goal: 5 95.511 B) 2. What is the calculated F? A) 0.511 B) 2. What is the mean square for treatments? A) 2.035 Answer: D Difficulty: Hard Goal: 5 94. What are the degrees of freedom for the treatment sum of squares? A) 2 B) 3 C) 10 D) 27 Answer: A Difficulty: Medium Goal: 5 91. What are the total degrees of freedom? A) 27 B) 28 C) 29 D) 30 Answer: C Difficulty: Medium Goal: 5 93. 13/e 206 .90.

five cigarettes from each of three brands were tested to see if the mean amount of tar per cigarette differs among the brands. If the sum of squares for the brands is 0. what is the mean square for brands? ______ Answer: 0.there is a difference in errors D) Fail to reject H0 -.there is a difference in errors Answer: A Difficulty: Hard Goal: 5 Fill-in-the-Blank Use the following to answer questions 97-106: In a study of low tar cigarettes. If F calculated is 4.035 Difficulty: Hard Goal: 4 100. what is the mean square for the error? ______ Answer: 0. Chapter 12 .09. What are the degrees of freedom for the numerator? ______ Answer: 2 Difficulty: Medium Goal: 4 98. what would the decision be if  = 0.74.96.66 Difficulty: Hard Goal: 4 103.89 Difficulty: Medium Goal: 5 102.07. What is the decision? A) Reject H0 -. What is the F critical value for á = 0. If the calculated F is 4.0075 Difficulty: Hard Goal: 4 101.75 what is the decision if  = 0.05? ______ Answer: 3.there is a difference in treatment means C) Reject H0 -. What is the calculated value of F if the brand sum of squares is 0. If the sum of squares for the error is 0. What are the degrees of freedom for the denominator? ______ Answer: 12 Difficulty: Medium Goal: 4 99.07 and the error sum of squares is 0.05? ___________ Answer: reject H0 Difficulty: Hard Goal: 5 104.09? ______ Answer: 4. 97.01? _________________ Answer: Do not reject H0 Difficulty: Medium Goal: 5 207 Test Bank.there is a difference in treatment means B) Fail to reject H0 -.

88 and F(0. 13/e 208 .11.29 B) 3. What are the degrees of freedom for the numerator and denominator? A) 3 and 18 B) 2 and 17 C) 3 and 15 D) 2 and 15 Answer: D Difficulty: Medium Goal: 4 108. Lind/Marchal/Wathen. what is the decision rule if α = 0.07 and the sum of squares for the error is 0.20 Answer: C Difficulty: Medium Goal: 4 109. what is the decision rule at α = 0.89 Difficulty: Hard Goal: 5 Multiple Choice Use the following to answer questions 107-111: Given the following Analysis of Variance table for three treatments each with six observations.05) = 3. What is the mean square for treatments? A) 71. If the sum of squares for the brands is 0. If the sum of squares for the brands is 0. What is the critical value of F at the 5% level of significance? A) 3.05) = 3. S T E T o u rc e re a tm e n ts rro r o ta l S u m o f S q u a re s 1116 1068 2184 df M e a n S q u a re 107.05? __________________________ Answer: Do not reject H0 since calculated F = 3.09.4 C) 558 D) 534 Answer: C Difficulty: Hard Goal: 4 Statistical Techniques in Business & Economics.2 B) 71.59 D) 3.105.05 and the sum of squares for the error is 0.05? ________________________ Answer: Do not reject H0 since calculated F = 3.68 C) 3.33 and F(0.89 Difficulty: Hard Goal: 5 106.

there is a difference in errors Answer: A Difficulty: Hard Goal: 5 Fill-in-the-Blank Use the following to answer questions 112-123: A bottle cap manufacture with four machines and six operators wants to see if variation in production is due to the machines and/or the operators. S o u rc e M a c h in e s O p e ra to rs E rro r T o ta l S u m o f S q u a re s 114 215 54 383 df M e a n S q u a re 112.there is a difference in errors D) Fail to reject H0 -. What is the decision? A) Reject H0 -. Each operator is assigned to each machine with the following Analysis of Variance table.84 C) 8. What is the critical value of F for the machine treatment effect at the 1% level of significance? ____ Answer: 5.110.there is a difference in treatment means B) Fail to reject H0 -. What are the degrees of freedom for the machines? ______ Answer: 3 Difficulty: Medium Goal: 7 113.84 D) 8.48 B) 7.42 Difficulty: Medium Goal: 7 209 Test Bank. What are the degrees of freedom for the errors? _____ Answer: 15 Difficulty: Medium Goal: 7 115. What is the computed value of F? A) 7.there is a difference in treatment means C) Reject H0 -.48 Answer: B Difficulty: Hard Goal: 4 111. What are the degrees of freedom for the operators? _____ Answer: 5 Difficulty: Medium Goal: 7 114. Chapter 12 .

3 8 2 . What is the critical value of F at the 0. What is H1? A) σ 21  σ 2 2 B) σ 21  σ 2 2 C) μ 1  μ 2 D) μ 1  μ 2 Answer: B 126.03 Answer: B Difficulty: Medium Goal: 2 211 Test Bank.P ro fe sso r 1 P ro fe sso r 2 M e a n G ra d e 7 9 .35 C) 6.01 level of significance? A) 5.4 1 2 .85 B) 5.1 S ta n d a rd D e v ia tio n 2 2 . Chapter 12 .51 D) 4.0 124. What are the degrees of freedom for the denominator of the F ratio? A) 20 B) 18 C) 10 D) 9 E) 8 Answer: D Difficulty: Medium Goal: 2 128. What are the degrees of freedom for the numerator of the F ratio? A) 8 B) 9 C) 10 D) 18 E) 20 Answer: B Difficulty: Medium Goal: 2 127. What is H0? A) σ 21  σ 2 2 B) σ 21  σ 2 2 C) μ 1  μ 2 D) μ 1  μ 2 Answer: A Difficulty: Medium Goal: 2 Difficulty: Medium Goal: 2 125.

85 B) 5.18 D) 5. Statistical Techniques in Business & Economics. The Mean Square Error (MSE) was 243. When comparing the mean salaries to test for differences between treatment means. What is the critical value of F at the 0.129. Answer: D Difficulty: Hard Goal: 2 132.3 M a s te r ’s D e g r e e o r M o re 12 7 8 .7.35 Answer: A Difficulty: Hard Goal: 2 131. C) Reject the null hypothesis and conclude the variance is the same. The following table summarized the results: N u m b e r s a m p le d M e a n s a la r y ( 1 .03 Answer: C Difficulty: Medium Goal: 2 130. what is the decision? A) Reject the null hypothesis and conclude the variance is different. D) Fail to reject the null hypothesis and conclude the variance is the same.0 0 0 ’s ) H ig h S c h o o l o r L ess 7 49 U n d e rg ra d u a te D e g re e 11 7 6 .867 C) 3. B) Fail to reject the null hypothesis and conclude no significant difference in the variance. the t statistic is based on: A) The treatment degrees of freedom. B) Fail to reject the null hypothesis and conclude the variance is different. Answer: A Difficulty: Hard Goal: 2 Use the following to answer questions 133-136: A random sample of 30 executives from companies with assets over \$1 million was selected and asked for their annual income and level of education. B) The total degrees of freedom. At the 5% level of significance.3 133. Lind/Marchal/Wathen. 13/e 212 .18 D) 4. C) Reject the null hypothesis and conclude the variance is the same. D) Fail to reject the null hypothesis and conclude the variance is the same.484 B) 1. At the 1% level of significance.35 C) 3.05 level of significance? A) 5. The calculated F ratio is A) 3. what is the decision? A) Reject the null hypothesis and conclude the variance is different. The ANOVA comparing the average income among three levels of education rejected the null hypothesis.

Chapter 12 .C) The error degrees of freedom D) The ratio of treatment and error degrees of freedom Answer: C Difficulty: Medium Goal: 6 213 Test Bank.