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Data for Problem 1

Income of men's Income of women's


group group
(in 1000$) (in 1000$)
97.40 81.31
111.25 79.10
This chart isn't available in your version of
101.94 65.67
83.17 91.21 Editing this shape or saving this workbook
97.95 84.89
97.41 83.68
100.20 101.09
80.17 88.43
107.11 85.51
114.17 73.13
104.37 93.97
98.08 74.29
104.20 83.01
125.04 84.55
105.56 79.37
112.34 85.02
86.28 97.86
109.79 86.14
119.68 83.01
84.09 80.16
100.67 91.40
110.30 88.18
73.36 88.01 F-Test Two-Sample for Variances
115.49 64.98

123.26 70.58

107.25 76.95 Mean


94.00 93.64 Variance
99.02 83.66 Observations
87.71 83.58 df
86.76 77.76 F
P(F<=f) one-tail
F Critical one-tail

F-Test Two-Sample for Variances


Mean
Variance
Observations
df
F
P(F<=f) one-tail
F Critical one-tail

0.03

0.0000000289
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Two-Sample for Variances

Income of men's group Income of women's group


(in 1000$) (in 1000$)
101.27 83.34
166.06 71.74
30 30
29 29
2.31481980540599
0.013580017352436
1.86081143547608

Two-Sample for Variances

Income of women's group Income of men's group


(in 1000$) (in 1000$)
83.3376721137411 101.668176344653
71.7377533614763 166.980638336087
30 24
29 23
0.42961719440243
0.0162725040434035
0.523481425339452

2.89023120106237
rt.
Answer.

A. Symmetric Yes
Normal Yes

B. Symmetric Yes
Normal Yes

C. (i) Minimum = 73.36


(ii) Maximum = 125.04
(iii) Median = 101.31
(iv) Q1 = 94.85
(v) Q3 = 110.17

D. (i) Minimum = 64.98


(ii) Maximum = 101.09
(iii) Median = 83.67
(iv) Q1 = 79.17
(v) Q3 = 88.14

E. Men
IQR = 15.32

According to the chart and IQR, the men's g

F. Men
Average = 101.27

G. Men's group appears to have larger varianc


larger than the range and IQR for women's

H. H0: variance_men = variance_women


Ha: variance_men > variance_women

I. Since the F.TEST() returns the p-value for t


In any case, we have p-value < alpha = 5%
J. H0: mean_men = mean_women
Ha: mean_men > mean_women

K. Since the T.TEST() returns the p-value for o


In any case, we have p-value < alpha = 5%
Women
IQR = 8.96

rt and IQR, the men's group is more variable.

Women
Average = 83.34

s to have larger variance because both range (Range = Max - Min) and IQR is
e and IQR for women's group. The chart also supports this fact.

variance_women
variance_women or Ha: variance_men is different from variance_women

eturns the p-value for two-tailed test, the value of one-tailed test needs to be divided by 2.
e p-value < alpha = 5%, hence H0 is rejected.
ean_women
ean_women or Ha: mean_men is different from mean_women

eturns the p-value for one-tailed test, the value of two-tailed test needs to be multiplied by 2.
e p-value < alpha = 5%, hence H0 is rejected.
Central East West South
17.5 18.3 18.5 18.0
16.3 17.7 17.7 18.2
16.5 17.3 17.9 17.2
17.0 18.2 17.1 16.8
17.2 17.0 18.4 17.8
17.6 18.1 18.3 17.6

A. SUMMARY anova single fact


Groups Count Sum
Central 6 102.1
East 6 106.6
West 6 107.9
South 6 105.6
South 6 103.5

We see that the variances are very similar.

B. (1). The obseravation (dependent variable) taken from each group has

(2). Each sample has to be independent one of another.

(3). Homogeneity of variances: all variances are the same.

From the chart and the summary, these assumptions appear to be

C. H0: mu_Central = mu_East = mu_West = mu_South = mu_North

Ha: At least two mu_i's are different

D. Alpha = 5%

ANOVA
Source of Variation SS df
Between Groups 3.649 4
Within Groups 6.965 25
Total 10.614 29

Decision. Since p-value < alpha, then H0 is rejected.

Conclusion. Not all means are equal.

E. For alpha = 1%, then p-value > alpha. Hence, H0 is not rejected.

H0 is rejected when alpha > 0.027

F. Using Tukey-Krammer's Procedure

Alpha = 5%

Q-critical = Q(alpha, I, n-I) = Q(0,05, 5, 25) =

Q-stat formula

Difference Q-stat Q-crit


Central - East 3.481 4.153
Central - West 4.486 4.153
Central - South 2.707 4.153
Central - North 1.083 4.153
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North
17.1
17.3
18.0
16.6
16.8
17.7

Average Variance
17.017 0.278
17.767 0.279
17.983 0.282
17.600 0.272
17.250 0.283

variable) taken from each group has to be approximately normal

ndent one of another.

variances are the same.

mary, these assumptions appear to be valid.

= mu_North In words, all means are equal

In word, not all means are equal.

MS F P-value F crit
0.912 3.274 0.027 2.759
0.279
t rejected.

Groups Count
Central 6
East 6
4.153 West 6
South 6
North 6

Reject H0 if Q-stat > Q-crit Meaning


No No difference
Yes There is a difference
No No difference
No No difference
version of Excel.

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Sum Average Variance
102.1 17.017 0.278
106.6 17.767 0.279
107.9 17.983 0.282
105.6 17.600 0.272
103.5 17.250 0.283
Data for Problem 3 (PLEASE COPY)

Number of Percent Expected


promotions discount price ($)
1 30 3.57 Anova: Two-Factor With Replication
1 30 3.77
1 30 3.90 SUMMARY Percent disc
1 30 4.49 1
1 30 4.00 Count 10
1 30 4.66 Sum 300
1 30 4.48 Average 30
1 30 4.64 Variance 0
1 30 4.31
1 30 4.43 1
1 10 5.19 Count 10
1 10 4.88 Sum 100
1 10 4.78 Average 10
1 10 4.89 Variance 0
1 10 4.69
1 10 4.96 Total
1 10 5.00 Count 20
1 10 4.93 Sum 400
1 10 5.10 Average 20
1 10 4.78 Variance 105.2631579
5 30 3.90
5 30 3.77
5 30 3.86 ANOVA
5 30 4.10 Source of Variation SS
5 30 4.10 Sample 931.7075625
5 30 3.81 Columns 2380.077562
5 30 3.97 Interaction 1070.707562
5 30 3.67 Within 1.54625
5 30 4.05
5 30 3.67 Total 4384.038937
5 10 4.31
5 10 4.36
5 10 4.75
5 10 4.62
5 10 3.74
5 10 4.34
5 10 4.52
5 10 4.37
5 10 4.40
5 10 4.52
ctor With Replication

Expected priTotal

10 20
42.25 342.25
4.225 17.1125
0.148694444 174.8995461

10 20
49.2 149.2
4.92 7.46
0.023111111 6.802105263

20
91.45
4.5725
0.208493421

df MS F P-value F crit
1 931.7075625 21692.1405 1.16991E-51 4.11316527681289
1 2380.077562 55413.28521 5.54913E-59 4.11316527681289
1 1070.707562 24928.35715 9.61055E-53 4.11316527681289
36 0.042951389

39
Expected
X D
price ($)
3.57 1 1
3.77 1 1
3.90 1 1

4.49 1 1
4.00 1 1
4.66 1 1
4.48 1 1
4.64 1 1
4.31 1 1
4.43 1 1
5.19 1 0
4.88 1 0
4.78 1 0
4.89 1 0
4.69 1 0
4.96 1 0
5.00 1 0
4.93 1 0
5.10 1 0
4.78 1 0
3.90 0 1
3.77 0 1
3.86 0 1
4.10 0 1
4.10 0 1
3.81 0 1
3.97 0 1
3.67 0 1
4.05 0 1
3.67 0 1
4.31 0 0
4.36 0 0
4.75 0 0
4.62 0 0
3.74 0 0
4.34 0 0
4.52 0 0
4.37 0 0
4.40 0 0
4.52 0 0
Rearrange the data
Expected Price (a) At level of significance 5%, test the effects of promotion fre
Number of PD 30 PD 10
Promotions
3.57 5.19 Step 1 and Step 2:
3.77 4.88
3.90 4.78
4.49 4.89
4.00 4.69
Prom. 1
4.66 4.96
4.48 5.00
4.64 4.93
4.31 5.10
4.43 4.78 Step 3:
3.90 4.31
3.77 4.36 Step 4:
3.86 4.75
4.10 4.62
4.10 3.74
Prom. 5
3.81 4.34
3.97 4.52
3.67 4.37
4.05 4.40
3.67 4.52
Step 5:

(b).

Prom. 1
Prom. 5

No interaction is suspected.

X*D
(c).
1
1
1

1
1
1
1
1
1
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
nificance 5%, test the effects of promotion frequency, discount and their interaction on the expected price using Two-factor ANOVA

H_0A: There is no effect of promotion frequency on the expected price.


H_aA: There is effect of promotion frequency on the expected price.

H_0B: There is no effect of discount on the expected price.


H_aB: There is effect of discount on the expected price.

H_0AB: There is no effect of interaction between promotion frequency and discount on the expected price.
H_aAB: There is effect of interaction between promotion frequency and discount on the expected price.

Level of Siginificance (alpha) 5%

Anova: Two-Factor With Replication

SUMMARY PD 30 PD 10 Total
Prom. 1
Count 10 10 20
Sum 42.250 49.200 91.450
Average 4.225 4.920 4.573
Variance 0.149 0.023 0.208

Prom. 5
Count 10 10 20
Sum 38.900 43.930 82.830
Average 3.890 4.393 4.142
Variance 0.027 0.072 0.113

Total
Count 20 20
Sum 81.150 93.130
Average 4.058 4.657
Variance 0.113 0.118

ANOVA
Source of Variation SS df MS F
Sample 1.858 1 1.858 27.474
Columns 3.588 1 3.588 53.067
Interaction 0.092 1 0.092 1.363
Within 2.434 36 0.068

Total 7.972 39

Conclusion:
There is effect of promotion frequency on the expected price.
There is effect of discount on the expected price.
There is no effect of interaction between promotion frequency and discount on the expected

Expected Price (Average)


Percent Discount vs Promotion Fre
PD 30 PD 10
5.50
4.23 4.92
3.89 4.39 5.00

o interaction is suspected. 4.50

4.00

3.50

3.00
Prom. 1

PD 30 PD 10

interation
PD30
prom1 Prom1*PD30

Number of PD 30 PD 10
Promotions rating
3.57 5.19 3.57
3.77 4.88 3.77
3.90 4.78 3.90
4.49 4.89 4.49
4.00 4.69 4.00
Prom. 1
4.66 4.96 4.66
4.48 5.00 4.48
4.64 4.93 4.64
4.31 5.10 4.31
4.43 4.78 4.43
3.90 4.31 5.19
3.77 4.36 4.88
3.86 4.75 4.78
4.10 4.62 4.89
4.10 3.74 4.69
Prom. 5
3.81 4.34 4.96
3.97 4.52 5.00
3.67 4.37 4.93
4.05 4.40 5.10
3.67 4.52 4.78
3.90
3.77
3.86
4.10
4.10
3.81
3.97
3.67
4.05
3.67
4.31
4.36
4.75
4.62
3.74
4.34
4.52
4.37
4.40
4.52

Conclusion. Factor Promotion Frequency and Factor Percent Discount are significant, but not their interaction, on th
ice using Two-factor ANOVA

on the expected price.


he expected price.

P-value F crit Significant at 5%? Decision


0.000 4.113 Yes Reject H_0A
0.000 4.113 Yes Reject H_0AB
0.251 4.113 No Do not reject H_0AB

and discount on the expected price.

Discount vs Promotion Frequency

Prom. 5

PD 30 PD 10

N1 Y20 N1*y20
1.00 1.00 1.00
1.00 1.00 1.00
1.00 1.00 1.00
1.00 1.00 1.00
1.00 1.00 1.00
1.00 1.00 1.00
1.00 1.00 1.00
1.00 1.00 1.00
1.00 1.00 1.00
1.00 1.00 1.00
1.00 0.00 0.00 SUMMARY OUTPUT
1.00 0.00 0.00
1.00 0.00 0.00 Regression Statistics
1.00 0.00 0.00 Multiple R 0.83346729
1.00 0.00 0.00 R Square 0.69466773
1.00 0.00 0.00 Adjusted R 0.66922337
1.00 0.00 0.00 Standard Err0.26002457
1.00 0.00 0.00 Observations 40
1.00 0.00 0.00
1.00 0.00 0.00 ANOVA
0.00 1.00 0.00 df SS
0.00 1.00 0.00 Regression 3 5.53778
0.00 1.00 0.00 Residual 36 2.43406
0.00 1.00 0.00 Total 39 7.97184
0.00 1.00 0.00
0.00 1.00 0.00 Coefficients Standard Error
0.00 1.00 0.00 Intercept 4.393 0.082
0.00 1.00 0.00 N1 0.527 0.116
0.00 1.00 0.00 Y20 -0.503 0.116
0.00 1.00 0.00 N1*y20 -0.192 0.164
0.00 0.00 0.00
0.00 0.00 0.00
0.00 0.00 0.00
0.00 0.00 0.00
0.00 0.00 0.00
0.00 0.00 0.00
0.00 0.00 0.00
0.00 0.00 0.00
0.00 0.00 0.00
0.00 0.00 0.00

but not their interaction, on the Expected Price.


MS F Significance F
1.84592667 27.301447 2.1914E-09
0.06761278

t Stat P-value Lower 95% Upper 95% sig?


53.425 0.000 4.226 4.560 yes
4.532 0.000 0.291 0.763 yes rej
-4.326 0.000 -0.739 -0.267 yes rej
-1.167 0.251 -0.526 0.142 no do not rej

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