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Example 1: Performing these calculations for the foreign freighter example yields the following.
Determine the computed Fvalue. Compare the Fvalue with the critical table F value and decide whether to
reject the null hypothesis using the α = .05.
1 5 2 8 3
2 7 3 4 5
3 4 5 6 3
4 2 4 7 4
5 6 9 2
6 8
Total 18 20 42 17
Solution:
1. State the Hypothesis
2. Determine the level of significance.
α = .05
3. Determine the degrees of freedom and the critical value of F
Between
Error
Total
5. Decision Rule:
6. Analysis:
Example #2: An apple juice manufacturer has developed a new product-a liquid concentrate that,
when mixed with water, produces 1 liter of apple juice. The product has several attractive features. First,
it is more convenient than canned juice, which is the way apple juice is currently sold. Second, because
the apple juice that is sold in cans is actually made from concentrate, the quality of the new product is at
least as high as that of canned apple juice. Third, the cost of the new product is slightly lower than that
of canned apple juice. The marketing manager has to decide how to market the new product. She can
create advertising that emphasizes convenience, quality, or price. To facilitate a decision, she conducts
an experiment in three different small cities. In one city, she launches the product with advertising
stressing the convenience of the concentrate (e.g., easy to carry from store to home and takes up less
room n the freezer). In the second city, the advertisements emphasize the quality of the product
(“average” shoppers are depicted discussing how good the apple juice tastes). Advertising that highlights
the relatively low cost of the liquid concentrate are used in the third city. The number of packages sold
weekly is recorded for the 20 weeks following the beginning of the campaign. These data are listed in
the accompanying table. The marketing manager wants to know whether differences in sales exist
between the three advertising strategies. (We assume that except for the type of advertising, the three
cities are identical.)