Question

# Consider the following 2-way ANOVA table. Factor A has 5 levels and factor B has 2...

Consider the following 2-way ANOVA table. Factor A has 5 levels and factor B has 2 levels.

 ANOVA Source of Variation SS df MS F P-value Factor A (Row factor) 72207.55 4 18051.89 7.770119 0.00003 Factor B (Column factor) 340.3125 1 340.3125 0.146482 0.70308 Interaction (A X B) 1415 4 353.75 0.152265 0.96138 Within 162627.1 70 2323.245 Total 236590 79

Assuming that all the treatment combinations of factors A and B have an equal number of observations, how many observations(replicates) were made for each of the treatment combinations?

Select one:

a. 6

b. 9

c. 7

d. 8

Consider the following 2-way ANOVA table. Factor A has 5 levels and factor B has 2 levels.

 ANOVA Source of Variation SS df MS F P-value Factor A (Row factor) 72207.55 4 18051.89 7.770119 0.00003 Factor B (Column factor) 340.3125 1 340.3125 0.146482 0.70308 Interaction (A X B) 1415 4 353.75 0.152265 0.96138 Within 162627.1 70 2323.245 Total 236590 79

Based on the above ANOVA table, which factor(s) are significant at α = 0.05 ?

Select one:

a. only factor B

b. Factor B and Iinteraction A X B

c. only factor A

d. factors A and B

A large national bank charges local companies for using their services. A bank official reported the results of a regression analysis designed to predict the bank's charges (Y) measured in dollars per month for services rendered to local companies. One independent variable used to predict service charges to a company is the company's sales revenue (X) measured in millions of dollars. Data for 21 companies was used and the following results are obtained.

 Predicted value of Y (Yi hat)= -2,700 + 20Xi, Two-tail test p-value = 0.034 (for testing β1)

Interpret the p-value for testing whether β1 is different from 0, that is regression is significant.

Select one:

a. For every \$1 million increase in sales revenue, you expect a service charge to increase \$0.034.

b. There is insufficient evidence (at the α = 0.10) to conclude that sales revenue (X) is a useful linear predictor of service charge (Y).

c. There is sufficient evidence (at α = 0.05) to conclude that sales revenue (X) is a useful linear predictor of service charge (Y).

d. Sales revenue (X) is a poor predictor of service charge

Solution-1:

n=80

=5*2*8

8 observations per each

d. 8

8

Solution-2:

For only factor A.,p<0.05

Meaning Factor A is significant

There is no Factor B and interaction effect as

p>0.05

c. only factor A

c. only factor A

Solution-3:

H0:slope=0

Ha:slope not = 0

p=0.034

p<0.05

Reject Ho

Accept Ha

There is a ;linear relationship between bank's charges and sales revenue

c. There is sufficient evidence (at α = 0.05) to conclude that sales revenue (X) is a useful linear predictor of service charge (Y).

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