Question

# A reporter with the Saint Pete Times is working on a story about the main factors...

A reporter with the Saint Pete Times is working on a story about the main factors making restaurants in the St. Pete area different from each other. The variable he is considering is the average meal price per person. The reporter selects a sample of 5 restaurants serving Italian food, Seafood and Steaks. The reporter believes that average price meal per person in the St Pete area is about the same independently of the type of restaurant. The table below shows sample mean and variances for collected data in dollars. Allow for an alpha of 0.01.

Italian            Seafood     Steakhouse

Sample Mean                14              17                20

Sample Variance          2.5             2.5               16

a. How many degrees of freedom are there in the problem?

b. What is the critical value for this problem?

c. What is the value for the mean of the means?

d. What is the value of SSTR and MSTR respectively?

e. What is the value of SSE and MSE respectively?

f. What is the value for the test statistic?

g. What is your decision after performing the test?

h. What is your conclusion after the test? Be specific and relate the conclusion to the problem.

applying one way ANOVA:

 Group ni x̅i S2i ni*(Xi-Xgrand)2 (ni-1)*S2i Italian 5 14 2.500 45.000 10.00 Seafood 5 17 2.500 0.000 10.00 Steakhouse 5 20 16.000 45.000 64.00 grand mean= 17.0000 90.000 84.00 SSTr SSE Source SS df MS F between 90.00 2.000 45.0000 6.43 error 84.00 12.000 7.0000 total 174.00 14.0000

a)

degrees of freedom for numerator =2

degrees of freedom for denomintor =12

b)

critical value at 0.01 level and above degrees of freedom=6.93

c)

value for the mean of the means =17

d)

value of SSTR =90

MSTR=90/2 =45

e)

value of SSE =84

MSE=84/12 =7

f)

value for the test statistic =MSTR/MSE =6.429

g)

as test statistic is not higher than critical value we can not reject Ho

h)

we can not conclude that average meal price per person differs for three restaurants,

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