Question

A test is conducted to compare three different income tax software packages to determine whether there is any difference in the average time it takes to prepare income tax returns using the three different software packages. Ten different people's income tax returns are done by each of the three software packages and the time is recorded for each. Given this format and testing using an alpha level equal to 0.05, the critical value associated with the primary hypothesis test is:

4.256.

2.456.

3.354

19.385.

Answer 1

Solution:

Here, we have to find the critical value by using F-table.

From given information, we have

Total number of groups = 3

So, between group df = 3 – 1 = 2

Total number of observations = 10*3 = 30

So, total df = 30 – 1 = 29

Within groups df = total df – between group df = 29 – 2 = 27

Within groups df = 27

So, we have df1 = 2, df2 = 27 for F critical value.

Level of significance = α = 0.05

So, critical value = F_{0.05, 2, 27} = 3.354131

(by using F-table)

Correct Answer: 3.354