Q:1 Scrap rates per thousands (parts whose defects cannot be reworked) are compared for 5

randomly selected days at three plants. Does the data prove significant difference in mean scrap
rates?

Scrap rates per thousand units

Plant A Plant B Plant C
11.4 11.1 10.2
12.5 14.1 9.5
10.1 16.8 9
13.8 13.2 13.3
13.7 14.6 5.9

This question has been attempted after solving question 2 below: the step-wise details follow the steps
followed in question 2.

Plant A Plant B Plant C

11.4 11.1 10.2
12.5 14.1 9.5
10.1 16.8 9
13.8 13.2 13.3
13.7 14.6 5.9
12.3 13.96 9.58 Mean
2.475 4.313 7.027 Variance

Ho: U1=U2=U3=U4
H1: Any one of these means is different
We test the above hypothesis with the alpha value of 5% or α=0.05

The One-Way ANOVA calculated for the rates of a random sample from three plants is presented in the
following table.

Source of Variation SS df MS F P-value

Between 48.897 2 24.45 5.309 0.0223
Within 55.26 12 4.605 x x
Total 104.156 14 7.44 x x

 Based on the p-value criteria the p-value is less than the assumed alpha value so we reject the
Null Hypothesis that the means of the above plants are equal. The mean of the one of the plants
would definitely be different from other/others.
Q:2 (Assignment#2) Sales of ABC magazine are compared over a 5-week period at four
Borders outlets in Chicago. Does the data prove a significant difference in mean weekly
sales?

Weekly Sales
Store 1 Store 2 Store 3 Store 4
102 97 89 100
106 77 91 116
105 82 75 87
115 80 106 102
112 101 94 100
108 87 91 101 MEANS
5 11 11 10 VARIANCE

To test if there is no variation in between, among or in total difference in the means of the samples, we
build our Null and Alternate hypothesis as follow:

Ho: U1=U2=U3=U4
H1: Any one of these means is different
We test the above hypothesis with the alpha value of 5% or α=0.05

Step 1: We will start with finding the Sum of Squares for the above 4 samples. In this regard, following
calculations need to be noted:

 The grand means is X= (102+106+105+115+112+97+77+82+80+101+89+91+75+106+94+100+

116+87+102+100)/20= 1937/20= 96.85
 The total variation in the data set would be SS(T)= (102-96.85)2 +(106-96.85)2 +(105-96.85)2
+(115-96.85)2 +(112-96.85)2 +(97-96.85)2 +(77-96.85)2 +(82-96.85)2 +(80-96.85)2 +(101-96.85)2
+(89-96.85)2 +(91-96.85)2 +(75-96.85)2 +(106-96.85)2 +(94-96.85)2 +(100-96.85)2 +(116-96.85)2
+(87-96.85)2 +(102-96.85)2 +(100-96.85)2 = 2826.55
 Out of the above total variations in the data set, the variation coming from within the data set
would be SS(W)= (102-108)2 +(106-108)2 +(105-108)2 +(115-108)2 +(112-108)2 +(97-87)2 +(77-
87)2 +(82-87)2 +(80-87)2 +(101-87)2 +(89-91)2 +(91-91)2 +(75-91)2 +(106-91)2 +(94-91)2 +(100-
101)2 +(116-101)2 +(87-101)2 +(102-101)2 +(100-101)2 = 1501.23
 Out of the above total variations in the data set, the between the groups in the data set would be
SS(B)= (108-96.85)2 +(108-96.85)2 +(108-96.85)2 +(108-96.85)2 +(108-96.85)2 + (87-96.85)2 +
(87-96.85)2 +(87-96.85)2 + (87-96.85)2 + (87-96.85)2 + (91-96.85)2 + (91-96.85)2 + (91-96.85)2 +
(91-96.85)2 + (91-96.85)2 + (101-96.85)2+ (101-96.85)2+ (101-96.85)2+ (101-96.85)2+ (101-
96.85)2 = 1325.35

Variation Sources SS df MS F P-value

Between 1325.35
Within 1501.2
Total 2826.55

 The degree of freedom (df) would be the total number of groups into the total number of values.
 The degree of freedom (df) between the groups would be one less the number of groups because
if the number of groups are known excluding one then the last one could be easily identified and
valued. It can be denoted as K-1, where K is the total number of groups. In our case there are four
groups where K=4 and K-1=3 so the (df) between the groups is 3.
 The degree of freedom (df) within the groups would be the sum of (df)s of each group as in our
case is 4+4+4+4=16. Or it can also be denoted as K(n-1) 4(5-1)=16.
 The total (df) would be one less the total number of the sample size, in our case it is (Kxn)-1 =
(4x5)-1= 19.

Variation Sources SS df MS F P-value

Between 1325.35 3
Within 1501.2 16
Total 2826.55 19

 MS stands for the Mean of Square which is the squared deviation from the mean divided by the
(df).
 The mean square between the groups MS(B) =SS/df 1325.35/3= 441.79
 The mean square within the groups MS(W) =SS/df 1501.2/16= 93.82
 The mean square between the groups MS(B) =SS/df 2826.55/19= 148.76

Variation Sources SS df MS F P-value

Between 1325.35 3 441.79
Within 1501.2 16 93.82
Total 2826.55 19 148.76

 F-test statistics is simply the ratio of the variances between and within. It can be find dividing
MS(B)/MS(W) or 441.79/93.82= 4.70

Variation Sources SS df MS F P-value

Between 1325.35 3 441.7833 4.70
Within Groups 1501.2 16 93.825 x
Total 2826.55 19 148.76 x

 F-test is a right tail test and p-value is the area to the right of the test statistics the value from F-
table against 4.70 with 0.05 is 0.01533 < α. So we reject the Null Hypothesis that the means of
the above groups are equal. The mean of the one of the groups would definitely be different from
other/others.
Variation Sources SS df MS F P-value
Between Groups 1325.35 3 441.7833 4.708589 0.01533
Within Groups 1501.2 16 93.825
Total 2826.55 19