PRACTICE PROBLEM

A management consulting company presents a three-day seminar on project management to

various clients. The seminar is the same each time it is given. However, sometimes it is
presented to high-level managers, sometimes to low-level managers. The seminar organizers
believe evaluations of the seminar may vary with the audience. Suppose the following data are
some randomly selected evaluation scores from different managers who attended the seminar.
The ratings are on a scale from 1 to 10, with 10 being the highest. Use a one-way ANOVA to
determine whether there is a significant difference in the evaluation according to the manager
level. Assume a = 0.5. Discuss the business implications of your findings.
High level managers Mid-level Low-level managers (
( X 1) managers( X 2 ) X 3)
7 8 5
7 9 6
8 8 5
7 10 7
9 9 4
10 8
8
Total 38 62 35 135
nj 5 7 6 18
X j (1)
^ 7.6 8.8571 5.8333 7.5

SSC = ∑ nj ( x́j - x́ ¿ ¿ 2 = ¿

= 29.6094

SSE = SS ( x́ 1 j - x́ j¿ ¿ 2 = ¿
= 18.8905

SST = SS( x́ 1j - x́ ¿ ¿ 2 = ¿
= 48,4999

d f T =N-1 =18-1 =17

 SSC 29.6049
MSC = = =14.80
df c 2
SSE 18.8905
MSE = = =1.2594
df E 15
MSC 14.80
F= = =11.7557
MSE 1.2594

Step 4
Source of variance SS df MS F
Between Groups 2 29.6094 14.8047 11.7557
Within Groups 15 18.8905 1.2594
Total 17 48.4999

Step 5
The decision is to reject the null hypothesis, as the observed value of 11.7557 is greater than the
critical table F value of 3.68. Thus, there is a significant difference between the means of three
project managers. The difference is based on the level of managers.