Question

An executive at the home office of Big Rock Life Insurance is considering three branch managers...

An executive at the home office of Big Rock Life Insurance is considering three branch managers as candidates for promotion to vice president. The branch reports include records showing sales volume for each salesperson in the branch (in hundreds of thousands of dollars). A random sample of these records was selected for salespersons in each branch. All three branches are located in cities in which per capita income is the same. The executive wishes to compare these samples to see if there is a significant difference in performance of salespersons in the three different branches. If so, the information will be used to determine which of the managers to promote.

Branch Managed by Adams Branch Managed by McDale Branch Managed by Vasquez
7.6 8.8 6.3
6.8 10.9 8.9
10.9 11.7 10.5
11.0 9.6 11.4
9.5
10.2

Use a 1% level of significance. Shall we reject or not reject the claim that there are no differences among the performances of the salespersons in the different branches?


(b) Find

SSTOT, SSBET, and SSW

and check that

SSTOT = SSBET + SSW.

(Round your answers to three decimal places.)

SSTOT

=

SSBET

=

SSW

=


Find

d.f.BET, d.f.W, MSBET, and MSW.

(Round your answers to three decimal places.)

d.f.BET

=

d.f.W

=

MSBET

=

MSW

=


Find the value of the sample F statistic. (Round your answers to three decimal places.)


What are the degrees of freedom?
(numerator)
(denominator)

(c) Find the P-value of the sample test statistic.

P-value > 0.1000.050 < P-value < 0.100     0.025 < P-value < 0.0500.010 < P-value < 0.0250.001 < P-value < 0.010P-value < 0.001


(f) Make a summary table for your ANOVA test. (Round your answers to three decimal places.)

Source of
Variation
Sum of
Squares
Degrees of
Freedom
MS F
Ratio
P-Value Test
Decision
Between groups ---Select--- P-value > 0.100 0.050 < P-value < 0.100 0.025 < P-value < 0.050 0.010 < P-value < 0.025 0.001 < P-value < 0.010 P-value < 0.001 ---Select--- Do not reject H0. Reject H0.
Within groups
Total

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