Wentworth Medical Center

As part of a long-term study of people aged 65 and older, physicians and

sociologists at Wentworth Medical Center in New York investigated the
relationship between geographic location and depression. A sample of 60
people was taken, all in good health; 20 from Florida, 20 from New York and 20
from North Carolina. Each of these individuals was given a standardized test to
measure depression. The data obtained can be found on the compact disk in
the Medical1 file.
Another part of the study consisted of analyzing the relationship between
geographic location and depression in people aged 65 years or older but who
had chronic conditions such as arthritis, hypertension or heart disease. A
random sample of people with these conditions was also taken for this study, 20
from Florida, 20 from New York and 20 from North Carolina. The data obtained
in this study are presented below. This data can be found on the compact disk
in the Medical2 file.
Administrative report
1. Use descriptive statistics to summarize the data from these two studies.
What are your preliminary observations about depression values?

TABLE N°1
Descriptive statistics: Florida, New York, North Carolina, for
people in good health.

Varianc Minimu Maximu

Variable N Media Std. dev. e CoefVar m Median m
Florida 20 5.550 2.139 4.576 38.54 2.000 6.000 9.000
New York 20 8.000 2.200 4.842 27.51 4.000 8.000 13.000
North 20 7.050 2.837 8.050 40.24 3.000 7.500 12.000
Carolina
Elaboration: minitab

Interpretation
The geographical location of New York has a higher level of depression
than the other locations.

TABLE N°2
Descriptive statistics: Florida, New York, North Carolina, for
people suffering from chronic conditions such as arthritis,
hypertension or heart disease.

Medi Std. Varianc CoefVa Minim Maxim

Variable N a dev. e r um Median um
Florida 2 14.50 3.171 10.053 21.87 9.000 14.500 21.000
0 0
New York 2 15.25 4.128 17.039 27.07 9.000 14.500 24.000
0 0
North 2 13.95 2.946 8.682 21.12 8.000 14.000 19.000
Carolina 0 0
Prepared by: own

Interpretation
The geographical location of New York has a higher level of depression
than the other locations.
2. Use analysis of variance for both data sets. In each case give the
hypotheses to be tested. What are your conclusions?

Independent variable is: geographic location

Dependent variable is: depression
The statistical objective of the experiment is to determine whether the
mean depression, of all healthy people, is the same in the three
populations (geographic location).

U1 = average number of depression in Florida

U2 = average number of depressions in New York City
U3 = average number of depressions in North Carolina.

Hypothesis
H0: U1=U2=U3 (all means are equal)
H1: U1#U2#U3 (not all averages are equal)
Significance level: α = 0.05

TABLE N°3
Analysis of Variance
Sourc G SC MC F- p-
e L Adjust. Adjust. value value
Factor 2 61.03 30.517 5.24 0.008
Error 57 331.90 5.823
Total 59 392.93

Conclusions: The null hypothesis is rejected then not all means are
equal. at least two of the population means have a different value.

TABLE N°4
Analysis of Variance
Sourc G SC MC F- p-
e L Adjust. Adjust. value value
Factor 2 17.03 8.517 0.71 0.494
Error 57 679.70 11.925
Total 59 696.73

Conclusions: The null hypothesis is accepted then all means are equal.
 3. If necessary, use inferences about the means of each of the treatments.
What are the conclusions?

Conclusion:
In the first case the null hypothesis is rejected, in the second case the
null hypothesis is accepted.
In the geographical location of New York a higher level of depression is
obtained, in both cases, since they have a higher mean.

Compensation for sales professionals

A local group of sales professionals in San Francisco conducts research among
its members to see if there is any relationship between years of experience and
salary for individuals employed as inside and outside salespeople. This survey
asks respondents to specify one of three levels of years of experience: low (1 to
10 years), medium (11 to 20 years) or high (21 or more years). Some of the
data obtained is presented below. The complete dataset, containing 120
observations, is contained in the Sales-Salary file on the compact disk that
comes with the book.

Verifying model assumptions:

NORMALITY OF ERRORS (waste)

Hypothesis
H0: errors have normal distribution
H1: errors do not have normal distribution
Level of significance:
α = 0.05
Test statistic:
Anderson-Darling normality test
AD= 0.348
P-Value: 0.472
Decision: the null hypothesis is not rejected.
Conclusion: with a significance of 5% it is concluded that the errors have a
normal distribution (the assumption is fulfilled).

HOMOGENEITY OF VARIANCES

Hypothesis:
H0: variances are equal (homogeneous)
H1: at least one variance is different
Level of significance:
α = 0.05
Test statistic:
Barlett: 0.42
P value: 0.995
Decision: the null hypothesis is not rejected.
Conclusion: with a significance of 5% it is concluded that the variances are
homogeneous (the assumption is met).

Administrative report
1. Use descriptive statistics to summarize the data.

Descriptive statistics: salary

Error
standar
d
of the
Variabl mean Minimu Maximu
e Position N N* Media Std. dev. m Q1 Median Q3 m
salary Inside 60 0 56021 463 3590 48621 53110 56210 58446 64562

Outside 60 0 73830 1023 7923 60259 66549 76316 79045 88730

Variabl Experience N N Medi Error Std. Minim Q1 Median Q3

e * a standar dev. um
d
of the
mean
salary High 4 0 66339 1534 9700 51027 5773 65441 7719
0 6 9
Low 4 0 59820 949 6005 48621 5507 60410 6384
0 6 2
Medium 4 0 68618 2154 13621 51246 5440 69616 8198
0 4 2

2. Give, using a 95% confidence interval, an estimate of the mean annual

salary of all salespeople, regardless of years of experience and type of
salesperson.

3. Provide, using a 95% confidence interval, an estimate of the average

annual salary of inside salespeople.

4. Give, using a 95% confidence interval, an estimate of the average annual

salary of outside salespeople.

5. Use analysis of variance to determine if there are significant differences

due to the type of vendor (external or internal). Use 0.05 as the
significance level, and, for now, ignore the effect of years of experience.

Hypothesis:
Ho: no effect of the type of salesperson on the average salary of
employed individuals.
H1: there is an effect of the type of salesperson on the average wage of
employed individuals.
Level of significance:
α = 0.05

TABLE N°5
Analysis of Variance
F- p-
Source GL SC Adjust. MC Adjust. value value
Position 1 9515793950 9515793950 751.36 0.000
Experience 2 1668100099 834050050 65.86 0.000
2 1352066184 676033092 53.38 0.000
Position*Experience
Error 114 1443782758 12664761
 Total 119 1397974299
2

Test statistic:
F= 751.36
P-Value = 0.000
Decision: the null hypothesis is rejected.
Conclusion: with a significance of 5% it is concluded that there is an
effect of some type of salesperson (internal, external) on the average
salary of employed individuals.

TABLE N°5
Group information using the
Tukey's method and 95% confidence
Positio
n N Media Grouping
Outside 60 73830.4 A
Inside 60 56020.5 B
Means that do not share a letter are significantly different.

U1 = average salary number of internal salesperson type

U2 = average salary number of the external salesperson type

Hypothesis
H0: U1=U2 ( means are equal)
H1: U1#U2 (averages are not equal)
Significance level: α = 0.05
Conclusion: the null hypothesis is rejected, the means are not equal.

6. Use analysis of variance to determine if there are significant differences

due to years of experience. Use 0.05 as the significance level and, for
now, ignore the effect of the type of vendor (external or internal).

Hypothesis:
Ho: there is no effect of years of experience on the average wage of
employed individuals.
H1: There is an effect of years of experience on the average wage of
employed individuals.
Level of significance:
α = 0.05

TABLE N°6
Analysis of Variance
F- p-
Source GL SC Adjust. MC Adjust. value value
 Position 1 9515793950 9515793950 751.36 0.000
Experience 2 1668100099 834050050 65.86 0.000
2 1352066184 676033092 53.38 0.000
Position*Experience
Error 114 1443782758 12664761
Total 119 1397974299
2

Test statistic:
F= 65.86
P-Value = 0.000
Decision: the null hypothesis is rejected.
Conclusion: With a significance of 5%, it is concluded that there is an
effect of years of experience on the average salary of employed
individuals.

Group information using the

Tukey's method and 95% confidence
Experienc
e N Media Grouping
Medium 40 68618. A
1
High 40 66338. B
7
Low 40 59819. C
6
Means that do not share a letter are significantly different.

U1 = average number of salary of those with low experience

U2 = average salary number of those with average experience
U2 = average number of salaries of those with high experience

Hypothesis
H0: U1=U2=U3 (all means are equal)
H1: U1#U2#U3 (not all averages are the same)
Significance level: α = 0.05
Conclusion: the null hypothesis is rejected, the means are not equal.

7. With 0.05 as the significance level, test for significant differences due to
type of salesperson, years of experience or interaction.
Hypothesis:
Ho: there is no interaction between type of salesperson and years of
experience influencing the average salary of employed individuals.
H1: There is interaction between the type of salesperson and years of
experience that influence the average salary of employed individuals.

Level of significance:
α = 0.05

TABLE N°5
Analysis of Variance
F- p-
Source GL SC Adjust. MC Adjust. value value
Position 1 9515793950 9515793950 751.36 0.000
Experience 2 1668100099 834050050 65.86 0.000
2 1352066184 676033092 53.38 0.000
Position*Experience
Error 114 1443782758 12664761
Total 119 1397974299
2

Test statistic:
F= 53.38
P-Value = 0.000
Decision: the null hypothesis is rejected.
Conclusion: With a significance of 5%, it is concluded that there is an
interaction between the type of salesperson and the years of experience
that influence the average salary of the employed individuals.

Group information using the

Tukey's method and 95% confidence
Position*Experience N Media Grouping
Outside Medium 2 81628.5 A
0
Outside High 2 75254.9 B
0
Outside Low 2 64607.9 C
0
Inside High 2 57422.4 D
0
Inside Medium 2 55607.8 D
0
Inside Low 2 55031.3 D
0
Means that do not share a letter are significantly different.
Conclusion: not all stockings are equal, but low internal, high internal and
medium internal are.