Question 237196: A corporate CEO reviews the earnings of three divisions over the last eighteen months. Each division reports its earnings quarterly. Based on the earnings below, is there sufficient evidence to conclude, at the 99% level of confidence, that one of these divisions is more profitable than the others?
Division I
42,1,48,55,56,47
Division II
33,36,40,20,13,19
Division III
21,1,26,8,18,1
· State the null and alternate hypotheses
· Calculate the sums of squares SS(total), SS(factor), and SS(error)
· Calculate the degrees of freedom df(total), df(factor), and df(error)
· Calculate the mean square for factor, and the mean square for error
· Calculate the F-statistic
· Determine the critical value(s)
· State your decision: Should the null hypothesis be rejected?
I thank the tutor who's willing to help me in solving this problem Thanks a bunch..
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A corporate CEO reviews the earnings of three divisions over the last eighteen months. Each division reports its earnings quarterly. Based on the earnings below, is there sufficient evidence to conclude, at the 99% level of confidence, that one of these divisions is more profitable than the others?
Division I
42,1,48,55,56,47
Division II
33,36,40,20,13,19
Division III
21,1,26,8,18,1
· State the null and alternate hypotheses
Ho: u1=u2=u3
H1: at least one of the means is different
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I ran the ANOVA program on my TI calculator and got all these
numbers. If you do not have some technology for running these
statistics programs you shoud it. You could just run EXCEL
and get these results.
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· Calculate the sums of squares SS(total), SS(factor), and SS(error)
· Calculate the degrees of freedom df(total), df(factor), and df(error)
· Calculate the mean square for factor, and the mean square for error
· Calculate the F-statistic
· Determine the critical value(s)
· State your decision: Should the null hypothesis be rejected?
At the 99% confidence level, do not reject Ho because the p-value
is 0.0137
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Cheers,
Stan H.
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