Chapter 12

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

2. The test statistic used in ANOVA is Student's t.
Answer: False
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.
Answer: True
Difficulty: Medium
Goal: 1
AACSB: AS

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

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

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

8. Unlike Student's t distribution, there is only one F distribution.
Answer: False
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.
Answer: True
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.
Answer: True
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.
Answer: False
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.
Answer: True
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.
Answer: False
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.
Answer: True
Difficulty: Hard
Goal: 2
2

2

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

16. To employ ANOVA, the populations should have approximately equal standard deviations.
Answer: True
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.
Answer: False
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.
Answer: True
Difficulty: Medium
Goal: 4
19. The alternate hypothesis used in ANOVA is 1   2   3 .
Answer: False
Difficulty: Medium
Goal: 5

193

Test Bank, Chapter 12

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

then the treatment means are not different. we compute a confidence interval for the difference between each pair of means. If a confidence interval for the difference between a pair of treatment means includes 0. If the computed value of F is 4. Answer: True Difficulty: Medium Goal: 5 21. Answer: True Difficulty: Easy Goal: 6 25. Answer: True Difficulty: Medium Goal: 7 29. If we want to determine which treatment means differ.05 level is used. When a blocking effect is included in an ANOVA. For an ANOVA test. the result is a smaller error sum of squares. Answer: True Difficulty: Medium Goal: 7 28. we would assume that a mistake in arithmetic has been made. Answer: True Difficulty: Medium Goal: 7 195 Test Bank. rejection of the null hypothesis does not identify which treatment means differ significantly. Answer: False Difficulty: Medium Goal: 6 27. The alternate hypothesis for ANOVA states that not all the means are equal. then there is no difference in the pair of treatment means.20. Answer: False Difficulty: Medium Goal: 5 23. Answer: False Difficulty: Medium Goal: 5 24.01 and the critical value is 2. we would conclude that all the population means are equal. A blocking effect is a specific source of variation in a set of data. If the computed value of F is 11. Answer: True Difficulty: Medium Goal: 5 AACSB: AS 22.67. Answer: True Difficulty: Medium Goal: 6 26.1 and the 0. A treatment is a specific source of variation in a set of data. Chapter 12 . If the endpoints of a confidence interval for the difference between a pair of treatment means are both positive numbers.

In a two-way ANOVA. In an interaction plot. the analysis is more likely to detect differences in the treatment means. block. In a two-way ANOVA with interaction. an interaction effect is also included. Answer: True Difficulty: Medium Goal: 8 37. Answer: False Difficulty: Hard Goal: 8 38. 13/e 196 .30. there are two factor effects and an interaction effect. When a blocking effect is included in an ANOVA. In a two-way ANOVA with treatment and block effects. the sum of the treatment. Interaction between two factors occurs when the effect of one factor on the response variable is the same for any value of another factor. When a blocking effect is included in an ANOVA. In a two-way ANOVA. Answer: True Difficulty: Medium Goal: 8 39. Answer: False Difficulty: Medium Goal: 7 31. Answer: False Difficulty: Hard Goal: 7 33. Answer: False Difficulty: Hard Goal: 8 Statistical Techniques in Business & Economics. the sum of the treatment. Answer: False Difficulty: Medium Goal: 7 35. block. Answer: True Difficulty: Medium Goal: 7 34. and error sum of squares equals the total sum of squares. the sum of the treatment and block mean squares equals the error mean square. two sources of variation are reported: treatment variation and block variation. Lind/Marchal/Wathen. parallel lines are an indication that there is no interaction effect. The F-statistic to test for a blocking effect is computed as the ratio of the Treatment Mean Square and the Block Mean Square. and error degrees of freedom equal the total degrees of freedom. Answer: True Difficulty: Medium Goal: 7 36. In a two-way ANOVA. Answer: True Difficulty: Hard Goal: 7 32.

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.

The company used ANOVA to test if the mean maintenance cost of the trucks from each manufacturer were equal. what is the critical value of F used to test the hypothesis that the miles per gallon for each fuel is the same. To apply the F test.45. Five trucks were purchased from manufacturer A.9 9 4 0 .6 9 3 8 . 13/e 198 . At the 0. below regular. Suppose a package delivery company purchased 14 trucks at the same time. Lind/Marchal/Wathen.0 4 . The cost of maintaining each truck was recorded.00 Answer: B Difficulty: Medium Goal: 4 46.05 level.8 7 3 9 . four from B and five from manufacturer C. The four grades are: regular. Three different fertilizers were applied to a field of celery. premium.8 9 .8 7 A) B) C) D) K ilo m e te rs p e r lite r B e lo w R e g u la r P re m iu m 3 6 . The test car made three trial runs on the test track using each of the four grades and the miles per gallon recorded. how many degrees of freedom are in the denominator? A) 2 B) 3 C) 11 D) 14 Answer: C Difficulty: Medium Goal: 4 Statistical Techniques in Business & Economics. In computing F.9 3 1. R e g u la r 3 9 .0 1 3 9 . Suppose that an automobile manufacturer designed a radically new lightweight engine and wants to recommend the grade of gasoline that will have the best fuel economy.3 1 3 9 . how many degrees of freedom are there in the numerator? A) 0 B) 1 C) 2 D) 3 Answer: C Difficulty: Medium Goal: 4 47.07 2.0 0 4 0 . and super premium.96 4.33 12.0 2 4 1 .9 9 Super 40 39 39 P re m iu m .

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.

What is the statistical technique used to test the equality of three or more population means called? ______________________ Answer: analysis of variance (ANOVA) Difficulty: Easy Goal: 3 67. what inference do we make about the population means? ________________ Answer: they are equal Difficulty: Medium Goal: 5 203 Test Bank. equal standard deviations or variances Difficulty: Medium Goal: 3 68. when we do not reject the null hypothesis. What equals the sum of squares divided by its corresponding degrees of freedom? _________________ Answer: mean square Difficulty: Hard Goal: 4 73.1 ) Difficulty: Medium Goal: 4 72. _______.k Difficulty: Medium Goal: 4 71. Chapter 12 . independent. how many degrees of freedom are associated with the numerator of the F ratio? _______ Answer: k . what is the numerator of the F ratio called? ______________ Answer: treatment mean square. In ANOVA. ANOVA.1 )( b . Assuming that the larger of two variances is in the numerator of an F statistic. In ANOVA. ANOVA requires that the populations should be _______. what are the degrees of freedom associated with the error sum of squares? ___________ Answer: n . What statistical technique is used to test the equality of three or more population means? ____________________ Answer: analysis of variance (ANOVA) Difficulty: Easy Goal: 3 69. in which tail of the F distribution is the rejection region for analysis of variance? ________ Answer: upper Difficulty: Medium Goal: 4 75. and ______. or interaction mean square Goal: 4 Difficulty: Medium 74.66.1 or b .1 or (k . Answer: normal or normally distributed. block mean square. What is the least number of sources of variation in ANOVA? _________ Answer: two Difficulty: Medium Goal: 3 70. In an ANOVA without a block source of variation.

1) Difficulty: Medium Goal: 7 81. Lind/Marchal/Wathen. what are the four sources of variation? _________ Answer: Factor A.76. When H0 is rejected in ANOVA. In a one-way ANOVA. Answer: confidence intervals Difficulty: Medium Goal: 6 78. table.1)(b . What is the null hypothesis for an ANOVA? ____________________ Answer: H o : μ 1  μ 2  μ 3 Difficulty: Medium Goal: 5 77. When a second treatment is included in the ANOVA analysis without interaction. In a two-way ANOVA with interaction. In a two-way ANOVA with interaction. Answer: blocking variable Difficulty: Medium Goal: 7 79. 13/e 204 . How many sources of variation are summarized in a two-way ANOVA table? _________ Answer: three Difficulty: Medium Goal: 7 80. Block and error variation Difficulty: Hard Goal: 7 85. _______ _______ are constructed to identify means that differ. what are the three sources of variation? Answer: Treatment. In a two-way ANOVA table.1) Difficulty: Hard Goal: 8 83. what are the error degrees of freedom? _________ Answer: (k . In a two-way ANOVA with interaction. what are the error degrees of freedom? _________ Answer: (n – kb) Difficulty: Hard Goal: 8 82. that treatment is called a __________________. what are the two sources of variation? _________ Answer: treatment and error variation Difficulty: Hard Goal: 5 84. factor B. In a two-way ANOVA without interaction.1)(b . error Difficulty: Hard Goal: 8 Statistical Techniques in Business & Economics. what are the interaction degrees of freedom? _________ Answer: (k . interaction of factors A and B.

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 .

What is the computed value of F for the machines? _____ Answer: 4. Lind/Marchal/Wathen. what is the decision for the operators? __________________________ Answer: Do not reject H0.116.77 Difficulty: Hard Goal: 7 120. 13/e 210 . To accomplish this they each graded the same 10 exams with the following results: Statistical Techniques in Business & Economics.44 Difficulty: Hard Goal: 7 119.50 Difficulty: Hard Goal: 7 121. What is the critical value of F for the operator block effect at the 1% level of significance? ____ Answer: 4. What is the mean square for errors? _____ Answer: 24. Using a 1% level of significance. what is the decision for the machines? __________________________ Answer: Do not reject H0.92 Difficulty: Hard Goal: 7 Essay 122. What is the computed value of F for the operators? _____ Answer: 1. What is the mean square for operators? _____ Answer: 47. What is the mean square for machines? _____ Answer: 111. Using a 1% significance level.56 Difficulty: Medium Goal: 7 117.39 Difficulty: Hard Goal: 7 118. there is no difference in production based on machines Difficulty: Hard Goal: 7 123. there is no difference in production based on the operators Hard Goal: 7 Difficulty: Multiple Choice Use the following to answer questions 124-132: Two accounting professors decided to compare the variation of their grading procedures.

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.

0  3. the 95% confidence interval shows an interval of 11. The analysis shows the following Analysis of Variance table.052*42.7 for the difference. B) The interval contains a difference of zero. D) Executives with and Undergraduate Degree earn significantly less than executives with a High School education or less. When comparing the mean annual incomes for executives with a High School education or less and Undergraduate Degree. Each operator is assigned to each machine and the production of caps from 3 randomly selected hours is recorded. This result indicates that A) There is no significant difference between the two incomes. D) The ANOVA results show that the mean annual incomes are not significantly different. A) A confidence interval shows that the mean annual incomes are not significantly different. C) Executives with and Undergraduate Degree earn significantly more than executives with a High School education or less.51 C) 2.0  2. the following 95% confidence interval can be constructed: A) 2. Answer: A Difficulty: Medium Goal: 6 136. C) A confidence interval shows that the mean annual incomes are significantly different.7 to 42. When comparing the mean annual incomes for executives with Undergraduate and Master's Degree or more. 137. Lind/Marchal/Wathen. Answer: C Difficulty: Hard Goal: 6 Fill-in-the-Blank Use the following to answer questions 137-153: A bottle cap manufacture with four machines and three operators wants to see if variation in hourly production is due to the machines and/or the operators or an interaction effect of machine and operator.052*6.46 D) None of the above Answer: A Difficulty: Hard Goal: 6 135. What are the degrees of freedom for the machines? ______ Answer: 3 Difficulty: Medium Goal: 8 Statistical Techniques in Business & Economics. Based on the comparison between the mean annual incomes for executives with Undergraduate and Master's Degree or more.0  2. 13/e 214 .134.182*6. B) The ANOVA results show that the mean annual incomes are significantly different.51 B) 2.

Chapter 12 .215 Test Bank.

What is the mean square for machines? _____ Answer: 38 Difficulty: Hard Goal: 8 145. What is the critical value of F for the interaction effect at the 1% level of significance? ____ Answer: 3.25 Difficulty: Hard Goal: 8 148.61 Difficulty: Medium Goal: 8 143.5 Difficulty: Hard Goal: 8 146. What are the degrees of freedom for the operators? _____ Answer: 2 Difficulty: Medium Goal: 8 139. What is the critical value of F for the machine effect at the 1% level of significance? ____ Answer: 4. What is the computed value of F for the machines? _____ Answer: 16. What is the mean square for errors? _____ Answer: 2. What is the mean square for operators? _____ Answer: 57.67 Difficulty: Hard Goal: 8 147. Lind/Marchal/Wathen. What is the mean square for interaction? _____ Answer: 16. What are the degrees of freedom for the error? _____ Answer: 24 Difficulty: Medium Goal: 8 141.56 Difficulty: Hard Goal: 8 Statistical Techniques in Business & Economics. What is the computed value of F for the operators? _____ Answer: 25. What are the degrees of freedom for the interaction? _____ Answer: 6 Difficulty: Medium Goal: 8 140.67 Difficulty: Medium Goal: 8 144. What is the critical value of F for the operator effect at the 1% level of significance? ____ Answer: 5.89 Difficulty: Hard Goal: 8 149. 13/e 216 .72 Difficulty: Medium Goal: 8 142.138.

150. Using a 1% level of significance.41 Difficulty: Hard Goal: 8 151. there is a difference in production based on machines Difficulty: Hard Goal: 8 Essay 152. Using a 1% level of significance. there is an interaction effect of machine and operator Difficulty: Hard Goal: 8 217 Test Bank. What is the computed value of F for the interaction? _____ Answer: 7. Chapter 12 . what is the decision for the interaction? __________________________ Answer: Reject H0. what is the decision for the machines? __________________________ Answer: Reject H0. Using a 1% significance level. what is the decision for the operators? __________________________ Answer: Reject H0. there is a difference in production based on the operators Difficulty: Hard Goal: 8 153.