Question

A company that employs a large number of salespeople is interested learning which of the salespeople sell the most: those strictly on commission, those with a fixed salary, or those with a reduced fixed salary plus a commission. The previous month’s records for a sample of salespeople are inspected and the amount of sales (in dollars) is recorded for each, as shown in the table.

Commissioned	Fixed salary	Commission plus salary
$492	$507	$450
$425	$361	$492
$450	$437	$470
$483	$432	$481
$466	$444
$425

Test to determine if a difference exists in the mean sale amount among the three compensation systems. Test using a= .025

(Please show all your work)

Answer 1

Ho: µ1=µ2=µ3
H1: not all means are equal

excel data analysis tool for one factor anova,steps are:

write data>menu>data>data analysis>anova :one factor>enter required labels>ok, and following o/p Is obtained,

Anova: Single Factor
SUMMARY
Groups	Count	Sum	Average	Variance
Commissioned	6	2741	456.8333	815.7667
Fixed salary	5	2181	436.2	2686.7
Commission plus salary	4	1893	473.25	320.92
ANOVA
Source of Variation	SS	df	MS	F	P-value	F crit
Between Groups	3113	2	1556.48	1.18	0.340	5.096
Within Groups	15788	12	1315.70
Total	18901	14

p value = 0.340 <α=0.025 , fail to reject Ho

so, there is not enough evidence to conclude that difference exists in the mean sale amount among the three compensation systems.