Statistical Techniques In Business And

Economics 17th Edition Lind Solutions

Manual
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Chapter 12 - Analysis of Variance

Chapter 12
Analysis of Variance
1. 9.01 from Appendix B.6 (LO12-1)

2. 9.78 (LO12-1)

3. Reject Ho if F > 10.5, where df in numerator are 7 and 5 in the denominator.

s 2 (10)2
F = 2.04, found by: F = 12 = = 2.04
s2 (7) 2
Do not reject Ho. There is no difference in the variations of the two populations. (LO12-1)

4. Reject Ho if F > 9.15, where df in numerator are 4 and 6 in the denominator.

s 2 (12)2
F = 2.94, found by: F = 12 = = 2.94
s2 (7) 2
Do not reject Ho. There is no difference in the variations of the two populations. (LO12-1)

5. Ho:  12 =  22 H1:  12   22
Reject Ho where F > 3.10 (3.10 is about halfway between 3.14 and 3.07)
(12) 2
F = 1.44, found by F = = 1.44
(10) 2
Do not reject Ho. It is reasonable to conclude variations of the two populations could be the
same. (LO12-1)

6. Ho:  12   22 H1:  12   22
(3.9)2
Reject Ho when F > 3.68 F = 1.24, found by F = = 1.24
(3.5)2
Do not reject Ho. There is no evidence the variations in stock 1 is larger than stock 2.
(LO12-1)

7. a. Ho: 1 = 2 = 3 H1: Treatment means are not all the same

b. Reject Ho if F > 4.26
c&d Source SS df MS F
Treatment 62.17 2 31.08 21.94
Error 12.75 9 1.42
Total 74.92 11
e. Reject Ho. The treatment means are not all the same. (LO12-2)

8. a. Ho: 1 = 2 = 3 H1: Treatment means are not all the same

b. Reject Ho if F > 3.89
c&d Source SS df MS F
Treatment 70.40 2 35.20 5.12
Error 82.53 12 6.88
Total 152.93 14
e. Reject Ho. The treatment means are not all the same. (LO12-2)

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Chapter 12 - Analysis of Variance

9. Step 1: Ho: Southwyck = Franklin = Old Orchard H1: Treatment means are not all the same
Step 2: The 0.05 significance level was chosen
Step 3: Use a F-statistics
Sep 4: Reject Ho if F > 4.26
Sep 5: Source SS df MS F
Treatment 276.50 2 138.25 14.18
Error 87.75 9 9.75
Reject Ho.
Step 6: The mean incomes are not all the same for the three tracks of land. (LO12-2)

10. Step 1: Ho: Banking = Retail = Insurance H1: Treatment means are not all the same
Step 2: The 0.05 significance level was chosen
Step 3: Use a F-statistics
Sep 4: Reject Ho if F > 3.89
Sep 5: Source SS df MS F
Treatment 22.93 2 11.45605.7325
Error 24.00 12 2.0
Reject Ho as 5.7325 > 3.89.
Step 6: The mean number of hours spent at the computer are not equal by industry. (LO12-2)

11. a. Ho: 1 = 2 = 3 H1: Treatment means are not all the same
b. Reject Ho if F > 4.26
c. SST = 107.20 SSE = 9.47 SS total = 116.67
d. Source SS df MS F
Treatment 107.20 2 53.600 50.96
Error 9.47 9 1.052
Total 116.67 11
e. Since 50.96 > 4.26, Ho is rejected. At least one of the means differ.
f. ( X 1 − X 2 )  t MSE (1/ n1 + 1/ n2 )
(9.667 − 2.20)  2.262 1.052(1/ 3 + 1/ 5)
7.467  1.69
[5.777, 9.157] Yes, we can conclude that the treatments 1 and 2 have different means.
(LO12-3)

12. a. Ho: 1 = 2 = 3 H1: Treatment means are not all the same
b. Reject Ho if F > 3.47
c. SST = 46.96 SSE = 53.00 SS total = 99.96
d. Source SS df MS F
Treatment 46.96 2 23.48 9.30
Error 53.00 21 2.52
Total 99.96 23
e. Since 9.30 > 3.47, Ho is rejected. At least one of the means differ.
f. ( X 1 − X 2 )  t MSE (1 / n1 + 1 / n2 ) or (6.0 − 4.25)  2.080 2.52 (1 / 101 + 1 / 8)
which is 1.75±1.57 or [0.18, 3.32]
Yes, we can conclude that the treatments 2 and 3 are different. (LO12-3)

13. There are two methods to answer this question. Using the six-step method we have the
following.
Step 1: Ho: 1 = 2 = 3 = 4 H1: Treatment means are not all equal

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Chapter 12 - Analysis of Variance

Step 2: 5% level chosen for us.

Step 3: Use an F-statistic
Step 4: Reject Ho if F > 3.71
Step 5: Here is the ANOVA Table
Source SS df MS F
Treatment 32.33 3 10.77 2.36
Error 45.67 10 4.567
Total 78.00 13
Since 2.36 is less than 3.71, Ho is not rejected.
Step 6: There is no difference in the mean number of weeks.
Alternatively we can interpret the p-value given in the output. A p-value of 0.133 is above the
significance level, so we fail to reject the null hypothesis. Regardless of the method used to
test the hypothesis, we find there is no difference in the mean number of weeks. (LO12-2)

14. a. The hypothesis is Ho: 1 = 2 = 

H1: At least one mean differs
The critical value is 3.74 as the numerator degrees of freedom is 2, the denominator
degrees of freedom is 14, and a significance level of 5%.
Since 15.61 > 3.74, Ho is rejected. At least one mean rate of return differs.
b. Since 0 is not between -7.121 and -2.935 the mean rates of return from utility stocks
and retail stocks are different.
Since 0 is between -3.066 and 1.121, the mean rates of return from utility and banking
stocks may be the same.
Since 0 is not between 2.060 and 6.051, the mean rates of return from retail and
banking stocks are different.
(LO12-3)
15. a. Ho: 1 = 2 H1: Not all treatment means are equal
b. Reject Ho if F > 18.5
c. Ho: A = B = C H1: Not all block means are equal
Reject Ho if F > 19.0
d. SSTotal = (46.0 – 36.5)2 + … (35.0 – 36.5)2 = 289.5
SSE1 = (46.0 – 42.3333)2 + … (35.0 – 30.6667)2 = 85.333
SST = 289.5 – 85.333 = 204.16667
SSB = 2(38.5 – 36.5)2 + 2(31.5 – 36.5)2 + 2(39.5 – 36.5)2 = 76
SSE = 289.5 – 204.1667 – 76 = 9.333
e. Source SS df MS F
Treatment 204.167 1 204.167 43.75
Blocks 76.000 2 38.000 8.14
Error 9.333 2 4.667
Total 289.5000 5
f. 43.75 > 18.5, so reject Ho. There is a difference in the treatments. 8.14 < 19.0, so fail
to reject Ho for blocks. There is no difference between blocks. (LO12-4)

16. a. Ho: 1 = 2 = 3 H1: Not all treatment means are equal

b. Reject Ho if F > 6.94
c. Ho: A = B = C H1: Not all block means are equal
Reject Ho if F > 6.94
d. SSTotal = (12 – 86/9)2 + … + (8 – 86/9)2 = 42.222
(28) 2 (33) 2 (25) 2 (86) 2
SST = + + − = 10.889
3 3 3 9

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Chapter 12 - Analysis of Variance

(34)2 (29) 2 (23) 2 (86) 2

SSB = + + − = 20.222
3 3 3 9
SSE = 42.222 – 20.222 – 10.889 = 11.111
e. Source SS df MS F
Treatment 10.889 2 5.444 1.96
Blocks 20.222 2 10.111 3.64
Error 11.111 4 2.778
Total 42.222 8
f. 1.96 < 6.94, so fail to reject Ho. There is no difference in the treatments. 3.64 < 6.94,
so fail to reject Ho for blocks. There is no difference between blocks. (LO12-4)

17. For treatment For blocks

Ho: Day = Afternoon = Night Ho: S = L = C = T = M
H1: Not all means equal H1: Not all means are equal
Reject if F > 4.46 Reject if F > 3.84
Here is the ANOVA table
Source SS df MS F
Treatment 62.53 2 31.2667 5.75
Blocks 33.73 4 8.4333 1.55
Error 43.47 8 5.4333
Total 139.73 14
As 5.75 > 4.46 the null for treatments is rejected, but the null for blocks is not rejected as
1.55< 3.84. There is a difference in means by shifts, but not by employee. (LO12-4)

18. For treatment For blocks

Ho: St Lukes = St Vincent = Mercy Ho: Mon = Tue = Wed = Thu = Fri
H1: Not all means equal H1: Not all means are equal
Reject if F > 4.46 Reject if F > 3.84
Here is the ANOVA table
Source SS df MS F
Treatment 58.13 2 29.0667 1.97
Blocks 75.73 4 18.9333 1.29
Error 117.87 8 14.7333
Total 251.73 14
Since 1.97 < 4.46 the Ho for treatments is not rejected. Likewise, since 1.29 < 3.84 Ho for
blocks is not rejected. There is no difference in the mean number of surgeries by hospital or by
day of the week. (LO12-4)

19. Here is the ANOVA table:

Source SS df MS F P
Size 156.333 2 78.1667 1.98 0.180
Weight 98.000 1 98.0000 2.48 0.141
Interaction 36.333 2 18.1667 0.46 0.642
Error 473.333 12 39.4444
Total 764.000 17
a. Since the p-value (0.18) is greater than 0.05, there is no difference in the Size means.
b. The p-value for Weight (0.141) is greater than 0.05.
Thus, there is no difference in those means.
c. There is no significant interaction because the p-value (0.642) is greater than 0.05.
(LO12-5)

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Chapter 12 - Analysis of Variance

20. The complete table is:

Source SS df MS F
Factor A 75 3 25 2
Factor B 25 2 12.5 1
Interaction 300 6 50 4
Error 600 48 12.5
Total 1000 59
Critical values to test for equal means are 2.80, 3.19 and 2.29, respectively. Thus, there is no
difference in either the Factor A or Factor B means, but there is interaction. (LO12-5)

Interaction Plot (data means) for Sales

46 Position
Inside
44 Outside

42

40
Mean

38

36

34

32

30
D-320 J-1000 UV-57
Machine
21. a. There appears to be an
interaction. Sales using the UV-57 are better inside and the D-320 does better outside.
b. Two-way ANOVA: Sales versus Machine, Position
Source SS DF MS F P
Machine 16.333 2 8.167 0.72 0.502
Position 104.167 1 104.167 9.12 0.007
Interaction 457.333 2 228.667 20.03 0.000
Error 205.500 18 11.417
Total 783.333 23
Since the machine p-value (0.502) is greater than 0.05, it appears there is no
difference in the mean sales by machine. The p-value for position (0.007) is less than
0.05 indicating there is evidence that mean sales inside and outside are different.
However, there is a considerable interaction between those factors. Further study is
recommended.
c. T-statistics for the null hypothesis that sales inside are equal to sales outside for each
of the machines are: -6.39, -2.41, and 3.22 for the D-320, J-1000, and UV-57,
respectively. We would not reject the null hypothesis of equal means if the t value is
between -2.571 and 2.571 for the J-1000 and D-320 and if the t-value is between
-2.776 and 2.776 for UV-57. Thus, at the 0.05 level of significance, you can conclude
that D-320 does better outside and the UV-57 does better inside. (LO12-5)

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Chapter 12 - Analysis of Variance

Interaction Plot (data means) for Salary

1050 Gender
Female
Male
1000

950

Mean
900

850

800

Manufacturing Marketing Res & Dev

Area
22. a. It appears males do much better
than females in the R & D area.
b. Two-way ANOVA: Salary versus Gender, Area
Source DF SS MS F P
Gender 1 62220 62220.2 6.50 0.020
Area 2 14071 7035.3 0.73 0.494
Interaction 2 80148 40073.8 4.18 0.032
Error 18 172430 9579.4
Total 23 328868
The p-value for gender (0.02) is less than 0.05 indicating a difference in mean
salaries by gender. Since the area p-value (0.494) is greater than 0.05, it appears there
is no difference in the mean salaries by area. However, there is interaction between
those factors and further investigation is needed.
c. The t-statistics for the null hypothesis that mean female salaries is equal to mean male
salaries by area are 0.34, -0.92 and -5.87 for manufacturing, marketing, and R & D,
respectively. These test statistics assume unequal variances. At the 0.05 level of
significance the critical values are 2.776, 2.776 and 2.571 respectively.
You deduce there is no difference in the first two areas but there is a substantial
difference in R & D. (LO12-5)

23. Ho:  12   22 H1:  12   22 Subscript 1 denotes oceanfront and 2 the others.

df1 = 21 – 1 = 20 df2 = 18 – 1 = 17 Ho is rejected if F > 3.16
(45,600)2
F= = 4.57
(21,330)2
Reject Ho. There is more variation in selling price of ocean front homes. (LO12-1)

24. Ho:  n2   o2 H1:  n2   o2

df1 = 16 – 1 = 15 df2 = 16 – 1 = 15 Ho is rejected if F > 2.40
(22) 2
F= = 3.36
(12) 2
Reject Ho. There is more variation in processing time of the new machine. (LO12-1)

25. Sharkey: n = 7 ss = 14.79

White: n = 8 sw = 22.95
Ho:  w2   s2 H1:  w2   s2
dfs = 7 – 1 = 6 dfw = 8 – 1 = 7 Ho is rejected if F > 8.26

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Chapter 12 - Analysis of Variance

(22.95) 2
F= = 2.41
(14.79) 2
Fail to reject Ho. There is no evidence the variation of the monthly sales for Sharkey is less
than White. (LO12-1)

26. a. Ho: 1 = 2 = 3 H1: Treatment means are not all equal

b.  = 0.05 Reject Ho if F > 3.89
c. Source SS df MS F
Treatment 40 2 20 4
Error 60 12 5
Total 100 14
d. Reject Ho. The treatment means are not all equal. (LO12-2)

27. a. Ho: 1 = 2 = 3 = 4 H1: Treatment means are not all equal

b.  = 0.05 Reject Ho if F > 3.10
c. Source SS df MS F
Treatment 50 3 50/3 1.67
Error 200 20 10
Total 250 23
d. Do not reject Ho. The treatment means could be equal (LO12-2)

28. Source SS df MS F
Treatment 320 2 160 8.00
Error 180 9 20
Total 500 11
a. 3
b. 12
c. 4.26
d. Ho: 1 = 2 = 3 H1: Not all means are equal
e. Ho is rejected. The treatment means differ. (LO12-2)

29. Ho: Discount = Variety = Department H1: Not all means are equal
Ho is rejected if F > 3.89
Source SS df MS F
Treatment 63.33 2 31.667 13.38
Error 28.40 12 2.367
Total 91.73 14
Ho is rejected. There is a difference in the treatment means. (LO12-2)

30. a. Step 1: Ho: Goust = Jet Red = Cloudtran H1: Not all means are equal
Step 2: 5% level chosen for us.
Step 3: Use an F-statistic
Step 4: Ho is rejected if F > 3.29
Step 5: Here is the ANOVA Table
Source SS df MS F
Treatment 127.1 2 63.6 3.04
Error 669.9 32 20.9
Total 797.0 34
Ho is not rejected since 3.04 < 3.29.
Step 6: There is no difference in the mean flight times.

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Chapter 12 - Analysis of Variance

 1 1
b. (50.5 − 55.714)  2.037 20.9 +  This reduces to -5.21  4.31. So the
 14 7 
difference is between -0.90 and -9.52 minutes. (LO12-3)

31. Ho:  Rec Center =  Key Street =  Monclova =  Whitehouse H1: Not all means are equal
Ho is rejected if F > 3.10
Source SS df MS F
Factor 87.79 3 29.26 9.12
Error 64.17 20 3.21
Total 151.96 23
Since computed F of 9.12 > 3.10, the null hypothesis of no difference is rejected at the 0.05
level there is evidence the number of crimes differs by district. (LO12-2)

32. One-way ANOVA: Clothes, Food, Toys

Source DF SS MS F P
Factor 2 3182.0 1591.0 35.56 0.000
Error 29 1297.5 44.7
Total 31 4479.5

S = 6.689 R-Sq = 71.04% R-Sq(adj) = 69.04%

Individual 95% CIs For Mean Based on

Pooled StDev
Level N Mean StDev -------+---------+---------+---------+--
Clothes 9 28.000 8.139 (----*----)
Food 12 46.417 6.186 (---*---)
Toys 11 52.636 5.887 (---*---)
-------+---------+---------+---------+--
30 40 50 60

Pooled StDev = 6.689

The hypothesis of identical means can definitely be rejected since the p-value is virtually zero.
As seen from the non-overlapping confidence intervals, clothes have a mean attention span at
least ten minutes below the other groups.

The 95% confidence intervals for the difference in means are

(-24.45 , -12.38) Clothes – Food
(-30.78 , -18.49) Clothes – Toys
(-11.93 , - 0.51) Food – Toys
The confidence intervals suggest the differences in means are not associated to random
chance, rather there is a difference between all of the commercial types. (LO12-3)

33. a. Ho: Lecture =  Distance H1: Lecture   Distance

Critical value of F = 4.75, Reject Ho if the F-stat > 4.75
Source SS df MS F P
Treatment 219.43 1 219.43 23.10 0.0004
Error 114.00 12 9.5
Total 333.43 13

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Chapter 12 - Analysis of Variance

Reject Ho in favor of the alternative.

37 - 45
b. t= - 4.806
æ1 1ö
9.5ç + ÷
è 6 8ø
Since t2 = F. That is (−4.806)2  23.10 (actually 23.098, difference due to rounding).
The p-value for this statistic is 0.0004 as well. Reject Ho in favor of the alternative.
c. There is a difference in the mean scores between lecture and distance based formats.
(LO12-2)

34. The null hypothesis of equal means is rejected because the F statistic (9.61) is greater than the
critical value (3.49). The p−value (0.0016) is also less than the significance level (0.05). The
mean repair times are different. (LO12-2)

35. The null hypothesis of equal means is rejected because the F statistic (8.26) is greater than the
critical value (5.61) using the 0.01 significance level. The p−value (0.0019) is also less than
the significance level (0.01). The mean miles per gallon are different. (LO12-2)

36. a. The null hypothesis of equal means is rejected because the F statistic (11.33) is greater
than the critical value (6.36). The p−value (0.0010) is also less than the significance
level (0.01). The mean production rates are different.
1 1
b. (43.333 − 41.5)  2.947 0.5444 + 
6 6
This reduces to 1.833  1.255. So the difference is between 0.578 and 3.088.
(LO12-3)

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Chapter 12 - Analysis of Variance

37. Ho: 1 = 2 = 3 = 4 H1: At least one mean is different.

Reject Ho if F > 2.7395 using a α of 5%. Since 11.90 is greater than 2.7395, Ho is
rejected. You can also see this conclusion from the p-value of 0.000, which is less than
0.05.
Priority mail express is faster than all three of the other classes and Priority mail is faster
than either first-class or standard because all differences are positive in those sections of
the printout. However, first-class and standard mail may be the same because 0 is
between -0.4499 and 0.7756. (LO12-2)

38 The critical value for a F-statistic with 6 degrees of freedom in the numerator and 48
degrees of freedom in the denominator at a 0.05 significance level is approximately 2.295
(averaging 2.34 and 2.25). Since 6.66 is greater than 2.295 the null is rejected. You can
also get the same conclusion from the p-value of 0.000, which is less than 0.05. At least
one mean is different.
Monday is higher than Tuesday, Thursday and Saturday because zero is not included in
the “Monday subtracted from” intervals. Tuesday is lower than Wednesday and Friday
because zero is not included in the “Tuesday subtracted from” intervals. Similarly
Wednesday is higher than Thursday and Saturday. Thursday is lower than Friday and
Sunday. Friday is higher than Saturday. (LO12-2)

39. For color the critical value of F is 4.76, for size it is 5.14
Source SS df MS F P
Treatment 25.0 3 8.3333 5.88 0.0227
Blocks 21.5 2 10.75 7.59 0.0321
Error 8.5 6 1.4167
Total 55.0 11
Ho for both treatments and blocks (color and size) is rejected. At least one mean differs for
color and at least one mean differs for size. (LO12-4)

40. Here is the two-way ANOVA Table

Source SS df MS F P
Treat 31533.00 3 10511 2.865 0.0717
Blocks 35402.83 5 7080.57 1.930 0.1488
Error 55033.50 15 3668.90
Total 121969.50 23
a. Ho: Metro = Interstate = University = River
Reject Ho if F > 3.29
Do not reject Ho because the computed F-statistics 2.865 is less than 3.29 or because
the p-value of 0.0717 is larger than the significance level. There is no difference in the
mean by location.
b. Ho: 1 = 2 = 3 = 4 = 5 = 6
Reject Ho if F > 2.90
Do not reject Ho as the F-statistic , 1.93, is less than the critical value and p-value is
more than the significance level There is no difference in the mean by week. (LO12-
4)

41. Here is the two-way ANOVA Table

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Chapter 12 - Analysis of Variance

Source SS df MS F P
Treat 21.4 3 7.133 0.668 0.5876
Blocks 4278.7 4 1069.675 100.204 0.0000
Error 128.1 12 10.675
Total 4428.2 19
a. Critical value for Ho is 3.49. Computed F is 0.668, do not reject Ho.
b. Critical value for Ho is 3.26. Computed F is 100.204, Reject Ho for block means.
There is a difference in mean home values.

42. For students For Sequence

Ho: A = C = H Ho: A = B = C = D
H1: Means not equal H1: Means not equal
Ho is rejected if F > 5.14 Ho is rejected if F > 4.76
Here is the two-way ANOVA Table
Source SS df MS F P
Treatment (Student) 3.92 2 1.96 1.39 0.3189
Blocks (Sequence) 10.21 3 3.40 2.41 0.1650
Error 8.46 6 1.41
Total 22.59 11
a. There is no effect of the different sequences on task completion time. The F test
statistic of 2.41 is less than 4.76, and the p-value of 0.1650 is greater than the
significance level 0f 0.05.
b. There is no effect of student on the task completion time. F test statistic of 1.39 is less
than 5.14, and the p-value of 0.3189 is greater than the significance level of 0.05.
(LO12-4)

43. For Gasoline For Automobile

Ho: R = M = S Ho: 1 = 2 = … 7
H1: Mean mileage is not the same for gas H1: Mean mileage is not the same for cars
Ho is rejected if F > 3.89 Ho is rejected if F > 3.00
Here is the two-way ANOVA Table
Source SS df MS F P
Gasoline 44.095 2 22.048 26.71 0.0000
Autos 77.238 6 12.873 15.60 0.0000
Error 9.905 12 0.825
Total 131.238 20
Both null hypothesis are rejected, with p-values below 0.05, thus there is a difference in mean
mileage by both autos and gasoline. (LO12-4)

44. Ho: S = R = L H1: There is a difference in mean price between stores Reject Ho if
F > 3.63
Ho: 1 = 2 = … 9 H1: There is a difference in mean price between items Reject Ho if F > 2.59
Here is the two-way ANOVA Table
Source SS df MS F P
Stores 0.1370 2 0.0685 3.10 0.0726
Items 71.6136 8 8.9517 405.62 0.0000
Error 0.3531 16 0.0221
Total 72.103 26
There is a difference in the mean price of items but not in the mean price by stores, as the p-
value for items is less than the significance level but not for stores. (LO12-4)

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Chapter 12 - Analysis of Variance

45. Ho: R = O = Y = B = T = G H1: The treatment means are not equal

Reject Ho if F > 2.37
Source SS df MS F P
Treat 0.03478 5 0.00696 3.86 0.0043
Error 0.10439 58 0.00180
Total 0.13917 63
Ho is rejected. There is a difference in the mean weight of the M&M colors. (LO12-2)

46. a. SSE = 126.29+233.34+166.79+77.57 = 603.99, found by adding the squared errors

for each station.

b. SST = SS Total – SSE = 1099.61 – 603.99 = 495.62

c. Source SS df MS F
Treat 495.62 3 165.207 9.847
Error 603.99 36 16.778
Total 1099.61
d. 9.847 > 2.89, so reject Ho. There is a difference in the treatment means.
e. (51.32 − 50.85)  2.03 9.725(1/10 + 1/10) = 0.470  2.831
[−2.361, 3.301] We cannot conclude that the number of minutes of music differ
between the hard rock station and the country/western station. (LO12-3)

Interaction Plot (data means) for Wages

Sector
1250
Priv ate
Public

1200

1150
Mean

1100

1050

1000

Men Women
Gender
47. a.
b. Here is the ANOVA table:
Source DF SS MS F P
Sector 1 156468 156468 40.61 0.000
Gender 1 44086 44086 11.44 0.004
Interaction 1 14851 14851 3.85 0.067
Error 16 61640 3853
Total 19 277046
Fail to reject the null hypothesis of the interaction effect. The interaction p-value
(0.067) is larger than 0.05. There is no significant interaction between the two factors.
c. Since both p-values are less than 5% and very small, means are different by gender
and by sector.

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Chapter 12 - Analysis of Variance

d. Private sector mean wages and male mean wages are higher than the converse of
either public sector wages or female wages. (LO12-5)

48. a.
Here is the MINITAB output: Two-way ANOVA: Dirt versus Cycle, Brand
Source DF SS MS F P
Cycle 3 0.017225 0.0057417 27.02 0.000
Brand 3 0.005725 0.0019083 8.98 0.001
Interaction 9 0.002200 0.0002444 1.15 0.386
Error 16 0.003400 0.0002125
Total 31 0.028550

S = 0.01458 R-Sq = 88.09% R-Sq(adj) = 76.93%

Individual 95% CIs For Mean Based on

Pooled StDev
Cycle Mean -+---------+---------+---------+--------
18 Min 0.12875 (----*-----)
20 Min 0.13250 (----*-----)
22 Min 0.17500 (----*-----)
24 Min 0.17875 (----*-----)
-+---------+---------+---------+--------
0.120 0.140 0.160 0.180

Individual 95% CIs For Mean Based on

Pooled StDev
Brand Mean -----+---------+---------+---------+----
A 0.14500 (-------*------)
B 0.15750 (------*------)
C 0.17375 (------*------)
D 0.13875 (-------*------)
-----+---------+---------+---------+----
0.135 0.150 0.165 0.180

b. Since the interaction p-value (0.386) is larger than the 0.05 significance level, there is
no evidence of an interaction effect.

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Chapter 12 - Analysis of Variance

Interaction Plot (data means) for Dirt

C y cle
0.20
18 Min
20 Min
22 Min
0.18 24 Min

0.16
Mean

0.14

0.12

0.10
A B C D
Brand

c. Both the cycle time means and the brand means are significantly different with
p-values of 0.000 and 0.001 respectively.
d. The confidence interval plots indicate that cycle times of 22 and 24 minutes are
superior to shorter cycle times and that detergent Brand C is better than Brands A and
D. Brands B and C are not statistically different. Brands A, B, and D are not
statistically different. (LO12-5)

49. a. Ho:  p2 =  np
2
H1:  p2   np
2

Reject Ho. The p-value is less than 0.05. There is a difference in the variance of
average selling prices between houses with pools and houses without pools.
b. Ho:  g2 =  ng
2
H1:  g2   ng
2

Reject Ho. There is a difference in the variance of average selling prices between
house with garages and houses without garages. The p-value is very small.

c. Ho: 1 = 2 = 3 = 4 = 5 H1: Not all treatment means are equal

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Chapter 12 - Analysis of Variance

Fail to reject Ho. The p-value is much larger than 0.05. There is no statistical evidence
of differences in the mean selling price between the five townships.

d. Ho: c = i = m = p = r H1: Not all treatment means are equal

Fail to reject Ho. The p-value is much larger than 0.05. There is no statistical evidence
of differences in the mean selling price between the five agents. Is fairness of
assignment based on the overall mean price, or based on the comparison of the means
of the prices assigned to the agents?

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Chapter 12 - Analysis of Variance

While the p-value is not less than

0.05, it may indicate that the
pairwise differences should be
reviewed. These indicate that
Marty’s comparisons to the other
agents are significantly different.
(LO12-2)

e. In this exercise, students should conduct a two-way or two-way with interaction ANOVA.

The results show that the mortgage type is a significant effect on the mean years of
occupancy. Students will be able to explain this result based on the way the mortgage
types work. In addition, the interaction term provides interesting information.
Depending on the statistical software used, the interaction plots will provide data
about the interaction of mortgage type and default. For example, it may be interesting
to see that both adjustable and fixed rate mortgages default, on average, after about 6
years.

50. a. Ho:  a2 =  g2 H1:  a2   g2

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Chapter 12 - Analysis of Variance

Do not reject Ho. There may be no difference in the variances of team salary by
league.
b. Sample 1, 2, and 3 are “Less than 2”, “2 up to 3”, and “3 or more”, respectively, for
remainder of solution.
Ho: 1 = 2 = 3 H1: Not all treatment mean number of wins are equal.

Do reject Ho. The mean numbers of games won is different across the three different
attendance categories. The teams with higher attendance had high mean number of
wins.
c. Ho: 1 = 2 = 3 H1: Not all treatment mean number of home runs are equal

Do not reject Ho. The mean numbers of home runs could be the same across the three
different attendance categories.

d. Ho: 1 = 2 = 3 H1: Not all treatment salary means are equal.

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Chapter 12 - Analysis of Variance

Reject Ho. The mean salaries are likely not the same across the three different
attendance categories. It appears that teams with higher attendance have higher
salaries. (LO12-2)

51.
a. Ho: B = K = T H1: Not all treatment (manufacturer) mean maintenance costs, are
equal.

Analysis of Variance

Source DF Adj SS Adj MS F-Value P-Value

Manufacturer 2 2957507 1478754 0.27 0.7664
Error 77 426490177 5538833
Total 79 429447684

Means

Manufacturer N Mean StDev 95% CI

Bluebird 47 4480.0 2552.4 (3796.4, 5163.5)
Keiser 25 4502.8 2049.3 (3565.5, 5440.1)
Thompson 8 5127.9 1928.4 (3471.0, 6784.8)

Pooled StDev = 2353.47

Do not reject Ho. The mean maintenance costs for the by the bus manufacturer is not different.
P-value = 0.7664.

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Chapter 12 - Analysis of Variance

b. Ho: B = K = T H1: Not all treatments have equal mean miles since the last maintenance.

Do not reject Ho. The mean miles since the last maintenance by the bus manufacturer is not different.
P-value = 0.4828. (LO12-3)

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