Question

A large department store examined a sample of the 18 credit card sales and recorded the...

A large department store examined a sample of the 18 credit card sales and recorded the amounts charged for each of three types of credit cards: MasterCard, Visa, and Discover. Six MasterCard sales, seven Visa, and five Discover sales were recorded. The store used an ANOVA to test if the mean sales for each credit card were equal. What are the degrees of freedom for the F statistic?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Degress of freedom of F statistic is given by n-k.

n= number of observations=18=3

Degrees of freedom=15

k= number of coefficients including intercept coefficient

In such type of questions it is advisable to use dummy variable taking value 0 in absence of the attribute and taking value 1 in presence of the attribute.

Y(sales)=bo+D1Mastercard+D2Visa

D1= 1 if mastercard, 0 otherwise

D2= 1 if Visa, 0 otherwise

Eg: In case of Discover the equation will reduce to Y=bo

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Prepare the necessary journal entries. ABC Corp sold merchandise on its store credit card for $4,000...
Prepare the necessary journal entries. ABC Corp sold merchandise on its store credit card for $4,000 The cost of the merchandise sold was $2,400 The company uses a perpetual inventory system. ABC Corp, recorded interest on past due store credit card accounts of $100 A restaurant is the site for a large company party.   The bill totals $5,200 and is charged by the company on a Mastercard. Assume a 4% service fee is charged by Mastercard. Record the journal entry...
Credit Card Sales The Kitchen Store accepts cash, personal checks, and two credit cards when customers...
Credit Card Sales The Kitchen Store accepts cash, personal checks, and two credit cards when customers buy merchandise. With the Great American Bank Card, The Kitchen Store receives an immediate deposit in its checking account when credit card sales slips are deposited at the bank. The bank charges a three percent fee. With the United Merchants Card, The Kitchen Store mails the credit card sales slips to United Merchants’ regional processing center each day. United Merchants accumulates these slips for...
A major retail clothing store is interested in estimating the difference in mean monthly purchases by...
A major retail clothing store is interested in estimating the difference in mean monthly purchases by customers who use the store's in-house credit card versus using a Visa, Mastercard, or one of the other major credit cards. To do this, it has randomly selected a sample of customers who have made one or more purchases with each of the types of credit cards. The following represents the results of the sampling: In House Credit Card National Credit Card Sample Size...
A major department store chain is interested in estimating the average amount its credit card customers...
A major department store chain is interested in estimating the average amount its credit card customers spent on their first visit to the chain’s new store in the mall. Twenty five credit card accounts were randomly sampled and analyzed with the following results: X = $85 and S = 28. Assuming the distribution of the amount spent on their first visit is approximately normal, find and interpret a 99% confidence interval for µ. Please explain and show work.
Purchase- Related Transaction The Stationery Company purchased merchandise on account from a supplier for $17,000 terms...
Purchase- Related Transaction The Stationery Company purchased merchandise on account from a supplier for $17,000 terms 2/10 n/30. The Stationery Company returned merchandise with invoice amount of $2, 200 and received full credit. a) If The Stationery Company pays invoice within the discount period, what is the amount of cash required for the payment? $____________. Determining Amounts to be Paid on Invoices Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit...
Q07. An ANOVA examining three different blanching processes to determine which is best in terms of...
Q07. An ANOVA examining three different blanching processes to determine which is best in terms of vitamin A retention (mg/100mg) yields an F statistic with an associated P-value of < .001. Therefore, at α = .05 we I. fail to reject the null hypothesis. II. reject the null hypothesis. III. conclude that mean vitamin A retention amounts are not all equal across the different blanching processes a) II only b) I only c) both II and III d III only...
Business Problem-Solving Case Walmart and Amazon Duke It Out for E-Commerce Supremacy Walmart is the world’s...
Business Problem-Solving Case Walmart and Amazon Duke It Out for E-Commerce Supremacy Walmart is the world’s largest and most successful retailer, with $487.5 billion in 2014 sales and nearly 11,000 stores worldwide, including more than 4,000 in the United States. Walmart has 2.2 million employees and ranks first on the Fortune 500 list of companies. Walmart had such a large and powerful selling machine that it really didn’t have any serious competitors—until now. Today, Walmart’s greatest threat is Amazon.com, often...
Asia’s e-commerce landscape has been booming in recent years. The swift adoption of smartphones and greater...
Asia’s e-commerce landscape has been booming in recent years. The swift adoption of smartphones and greater access to the internet has allowed consumers in the region to be a major force in the global digital economy. The expansion looks set to continue at a rapid pace. According to a November 2018 report by Fitch Solutions, e-commerce sales in the region are forecast to increase by 14.2% this year, with an estimated average annual increase of 14% over the medium term...
What tools could AA leaders have used to increase their awareness of internal and external issues?...
What tools could AA leaders have used to increase their awareness of internal and external issues? ???ALASKA AIRLINES: NAVIGATING CHANGE In the autumn of 2007, Alaska Airlines executives adjourned at the end of a long and stressful day in the midst of a multi-day strategic planning session. Most headed outside to relax, unwind and enjoy a bonfire on the shore of Semiahmoo Spit, outside the meeting venue in Blaine, a seaport town in northwest Washington state. Meanwhile, several members of...
      MK Restaurant: Branding of Thai-Style Hotpot The restaurant industry is one of the most...
      MK Restaurant: Branding of Thai-Style Hotpot The restaurant industry is one of the most competitive in Thailand. With a large number of players ranging from restaurants in five-star hotels, global fast-food chains to small stalls along the streets and everything in between, the Thais are spoiled for choice. In addition, as the world becomes globalized, consumers are familiar with international dishes and would not hesitate to try new offerings from the other side of the globe. As a...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT