For Exercises 14.1 and 14.2, see pages 717–718; for 14.3 and 14.4, see page 720; for 14.5 and 14.6, see page 722; for 14.7, see page 724; for 14.8 and 14.9, see page 726; for 14.10 to 14.13, see pages 728–728; for 14.14 and 14.15, see page 731; for 14.16 to 14.19, see page 739; for 14.20 and 14.21, see page 740; for 14.22 and 14.23, see page 741; for 14.24 and 14.25, see page 742; for 14.26 and 14.27, see page 743; for 14.28 and 14.29, see page 744; and for 14.30 and 14.31, see page 748.
14.32 A one-way ANOVA example.
A study compared four groups with eight observations per group. An statistic of 2.78 was reported.
14.33 Use the statistic.
A study compared six groups with six observations per group. An statistic of 2.85 was reported.
14.33
(a) . (c) . (d) Reject ; the -value is smaller than . (e) No. A rejection of the null hypothesis only indicates that at least one mean is different, not all.
14.34 How large does the statistic need to be?
For each of the following situations, state how large the statistic needs to be for rejection of the null hypothesis at the 0.05 level.
14.35 Find the statistic.
For each of the following situations, find the statistic and the degrees of freedom. Then draw a sketch of the distribution under the null hypothesis and shade in the portion corresponding to the -value. State how you would report the -value.
14.35
(a) . (b) .
14.36 Visualizing the ANOVA model.
For each of the following situations, draw a picture of the ANOVA model similar to Figure 14.6 (page 719). Use numerical values for the . To sketch the Normal curves, you may want to review the 68–95–99.7 rule on page 43.
14.37 The ANOVA framework.
For each of the following situations, identify the response variable and the populations to be compared, and give , the , and .
14.37
(a) Response: rating score (1 to 5). The populations are (1) elementary statistics students, (2) health and safety students, and (3) cooperative housing students. . (b) Response: acceptance rating (1 to 5). The populations are (1) students who attend varsity football or basketball games only, (2) students who also attend other varsity competitions, and (3) students who did not attend any varsity games. . (c) Response: sales. The populations are sales on days offering (1) a free drink, (2) free chips, (3) a free cookie, and (4) nothing. .
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14.38 Describing the ANOVA model.
For each of the following situations, identify the response variable and the populations to be compared, and give , the , and .
14.39 Provide some details.
Refer to Exercise 14.37. For each situation, give the following:
14.39
For part a: (a) . (b) not all of the are equal. (c) . For part b: (a) . (b) : not all of the are equal. (c) . For part c: (a) . (b) : not all of the are equal. (c) .
14.40 Provide some details.
Refer to Exercise 14.38. For each situation, give the following:
14.41 How much can you generalize?
Refer to Exercise 14.37. For each situation, discuss the method of obtaining the data and how this would affect the extent to which the results can be generalized.
14.41
Answers will vary. Most situations don’t use random sampling and/or are too specific to be generalizable.
14.42 How much can you generalize?
Refer to Exercise 14.38. For each situation, discuss the method of obtaining the data and how this would affect the extent to which the results can be generalized.
14.43 Pooling variances.
An experiment was run to compare four groups. The sample sizes were 30, 32, 150, and 33, and the corresponding estimated standard deviations were 25, 22, 13, and 23.
14.43
(a) Yes, the largest is less than twice the smallest ; . (b) 625, 484, 169, 529. (c) . (d) . (e) The third group has the largest sample size and will influence or weight the pooled standard deviation more.
14.44 Public transit use and physical activity.
In one study on physical activity, participants used accelerometers and a seven-day travel log to monitor their physical activity.7 Researchers used the data from each participant to quantify the amount of daily walking and to classify each as a non-transit user, or a low-, mid-, or high-frequency transit user. Below is a summary of physical activity (in minutes per day) broken down into walking and non-walking activities.
Physical activity | Nontransit |
Low frequency |
Mid frequency |
High frequency |
Overall -value |
Walking | 21.8a | 25.8a,b | 34.4b,c | 36.5c | <0.001 |
Nonwalking | 16.0 | 13.5 | 11.9 | 15.2 | 0.24 |
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14.45 Winery websites.
As part of a study of British Columbia wineries, each of the 193 wineries were classified into one of three categories based on their website features. The Presence stage just had information about the winery. The Portals stage included order placement and online feedback. The Transactions Integration stage included direct payment or payment through a third party online. The researchers then compared the number of market integration features of each winery (for example, in-house touring, a wine shop, a restaurant, in-house wine tasting, gift shop, and so on). Here are the results:8
Stage | |||
Presence | 55 | 3.15 | 2.264 |
Portals | 77 | 4.75 | 2.097 |
Transactions | 61 | 4.62 | 2.346 |
14.45
(a) The Portals and Transactions stages seem to have higher integration features than the Presence stage. (b) An observational study. They are not imposing a treatment on the winery. (c) Yes, the largest is less than twice the smallest ; . (d) This shouldn’t be a problem because our inference is based on sample means, which will be approximately Normal given the sample sizes. (e) . There are significant differences in the number of market integration features of the wineries among those with different website stages.
14.46 Time levels of scale.
Recall Exercise 7.62 (page 396). This experiment actually involved three groups. The last group was told the construction project would last 12 months. Here is a summary of the interval lengths (in days) between the earliest and latest completion dates.
timescl
Group | |||
1: 52 weeks | 30 | 84.1 | 55.7 |
2: 12 months | 30 | 104.6 | 70.1 |
3: 1 year | 30 | 139.6 | 73.1 |
14.47 Time levels of scale, continued.
Refer to the previous exercise.
timescl
14.47
(a) not all of the are equal, . There are significant interval differences among the three groups. (b) The Bonferroni procedure shows that group 2 is not significantly different from either group 1 or group 3; however, group 3 is significantly different (larger) than group 1. (c) This is not appropriate. The regression assumes that group 2 (coded as 2) would have twice the effect of group 1 (coded as 1), and group 3 (coded as 3) would have 3 times the effect of group 1, etc. This is likely not true.
14.48 Additional analysis for the moral strategy example.
CASE 14.1 Refer to Case 14.1 (page 715) for a description of the study and Figure 14.8 (page 724) for the ANOVA results. The researchers hypothesize that the control group would be less likely to continue to buy products because they were not primed with a moral reasoning strategy.
moral
14.49 Additional ANOVA for the moral strategy example.
Refer to Case 14.1 (page 715) for a description of the study. In addition to rating the likelihood to continue to purchase products, each participant was also asked to judge the CEO’s degree of immorality. This was done by answering a couple questions on a 0–7 scale where the high the score, the stronger the immorality.
moral1
14.49
(a)
Immorality | |||
---|---|---|---|
Level of Grp |
Mean | Std Dev | |
C | 41 | 6.4512 | 0.5788 |
D | 43 | 6.2209 | 0.8040 |
R | 37 | 5.6892 | 1.2767 |
(b) There is no reason to believe the cases are not independent. Constant variance is violated: the largest is more than twice the smallest , . The sample sizes are large enough that the sample means should be approximately Normally distributed. ANOVA should not be used because the standard deviations are too different to be assumed equal. (c) not all of the are equal, . There are significant immorality judgment differences among the three groups.
14.50 Additional ANOVA for the moral strategy example, continued.
Refer to the previous exercise.
moral1
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14.51 Organic foods and morals?
Organic foods are often marketed using moral terms such as “honesty” and “purity.” Is this just a marketing strategy, or is there a conceptual link between organic food and morality? In one experiment, 62 undergraduates were randomly assigned to one of three food conditions (organic, comfort, and control).9 First, each participant was given a packet of four food types from the assigned condition and told to rate the desirability of each food on a 7-point scale. Then, each was presented with a list of six moral transgressions and asked to rate each on a 7-point scale ranging from 1 = not at all morally wrong to 7 = very morally wrong. The average of these six scores was used as the response.
organic
14.51
(a)
Score | |||
---|---|---|---|
Level of Food |
Mean | Std Dev | |
Comfort | 22 | 4.8873 | 0.5729 |
Control | 20 | 5.0825 | 0.6217 |
Organic | 35 | 5.5835 | 0.5936 |
Yes, the largest is less than twice the smallest ; . (b) While the distributions aren’t Normal, there are no outliers or extreme departures from Normality that would invalidate the results. We can likely proceed with the ANOVA.
14.52 Organic foods and morals, continued.
Refer to the previous exercise.
organic
14.53 Organic foods and friendly behavior?
Refer to Exercise 14.51 for the design of the experiment. After rating the moral transgressions, the participants were told “that another professor from another department is also conducting research and really needs volunteers.” They were told that they would not receive compensation or course credit for their help and then were asked to write down the number of minutes (out of 30) that they would be willing to volunteer. This sort of question is often used to measure a person’s prosocial behavior.
organic
14.53
(a) not all of the are equal, . There are significant differences in the number of minutes that the three groups are willing to volunteer. According to the Tukey multiple comparison, the Comfort group is willing to donate significantly more minutes than the Organic group. In other words, the Comfort group shows more prosocial behavior than the Organic group. The Control group is in the middle, not significantly different from either the Comfort or Organic group in the number of minutes they are willing to donate. (b) The residual plot shows a slight decrease in variability, suggesting a possible violation of constant variance. The Normal quantile plot looks fine and shows a roughly Normal distribution.
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14.54 Restaurant ambiance and consumer behavior.
There have been numerous studies investigating the effects of restaurant ambiance on consumer behavior. One study investigated the effects of musical genre on consumer spending.10 At a single high-end restaurant in England over a three-week period, there were a total of 141 participants; 49 of them were subjected to background pop music while dining, 44 to background classical music, and 48 to no background music. For each participant, the total food bill (in British pounds), adjusted for time spent dining, was recorded. The following table summarizes the means and standard deviations.
Background music |
|||
Pop | 21.912 | 49 | 2.627 |
Classical | 24.130 | 44 | 2.243 |
None | 21.697 | 48 | 3.332 |
Total | 22.531 | 141 | 2.969 |
14.55 Shopping and bargaining in Mexico.
Price haggling and other bargaining behaviors among consumers have been observed for a long time. However, research addressing these behaviors, especially in a real-life setting, remains relatively sparse. A group of researchers recently performed a small study to determine whether gender or nationality of the bargainer has an effect on the final price obtained.11 The study took place in Mexico because of the prevalence of price haggling in informal markets. Salespersons working at various informal shops were approached by one of three bargainers looking for a specific product. After an initial price was stated by the vendor, bargaining took place. The response was the difference between the initial and the final price of the product. The bargainers were a Spanish-speaking Hispanic male, a Spanish-speaking Hispanic female, and an Anglo non-Spanish-speaking male. The following table summarizes the results.
Bargainer | ||
Hispanic male | 40 | 1.055 |
Hispanic female | 40 | 2.310 |
Anglo male | 40 | 1.050 |
14.55
(a) . (b) . There are significant average reduction differences among the different groups of bargainers. (c) Because the bargainer was the same person each time, there is no way to differentiate if the average reduction was due to race/gender or due to individual ability to bargain. Hence, the results would certainly not be generalizable.
14.56 Internet banking.
A study in Finland looked at consumer perceptions of Internet banking (IB).12 Data were collected via personal, structured interviews as part of a nationwide consumer study. The sample included 300 active users of IB, between 15 and 74 years old. Based on the survey, users were broken down into three groups based on their familiarity with the Internet. For this exercise, we consider the consumer’s perception of status or image in the eyes of other consumers. Standardized scores were used for analysis.
Familiarity | Mean | |
Low | 0.21 | 77 |
Medium | −0.14 | 133 |
High | 0.03 | 90 |
14.57 The multiple-play strategy.
Multiple play is a bundling strategy in which multiple services are provided over a single network. A common triple-play service these days is Internet, television, and telephone. The market for this service has become a key battleground among telecommunication, cable, and broadband service providers. A recent study compared the pricing (in dollars) among triple-play providers using DSL, cable, or fiber platforms.13 The following table summarizes the results from 47 providers.
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Group | |||
DSL | 19 | 104.49 | 26.09 |
Cable | 20 | 119.98 | 40.39 |
Fiber | 8 | 83.87 | 31.78 |
14.57
(a) The pricing among triple-play providers does seem different. Cable has the highest prices followed by DSL. Fiber has the cheapest prices for tripleplay. (b) Yes, the largest is less than twice the smallest ; . (c) . There are significant differences in triple-play pricing among the difference provider platforms.
14.58 A contrast.
Refer to the previous exercise. Use a contrast to compare the fiber platform with the average of the other two. The hypothesis prior to collecting the data is that the fiber platform price would be smaller. Summarize your conclusion.
14.59 Financial incentives for weight loss.
The use of financial incentives has shown promise in promoting weight loss and healthy behaviors. In one study, 104 employees of the Children’s Hospital of Philadelphia, with BMIs of 30 to 40 kilograms per square meter , were each randomly assigned to one of three weight-loss programs.14 Participants in the control program were provided a link to weight-control information. Participants in the individual-incentive program received this link but were also told that $100 would be given to them each time they met or exceeded their target monthly weight loss. Finally, participants in the group-incentive program received similar information and financial incentives as the individual-incentive program but were also told that they were placed in secret groups of five and at the end of each four-week period, those in their group who met their goals throughout the period would equally split an additional $500. The study ran for 24 weeks and the total change in weight (in pounds) was recorded.
loss
14.59
(a)
Loss | |||
---|---|---|---|
Level of Group | Mean | Std Dev | |
Ctrl | 35 | −1.0086 | 11.5007 |
Grp | 34 | −10.7853 | 11.1392 |
Indiv | 35 | −3.7086 | 9.0784 |
(b) Yes, the largest is less than twice the smallest ; . (c) All three distributions are roughly Normal.
14.60 Financial incentives for weight loss, continued.
Refer to the previous exercise.
loss
14.61 Changing the response variable.
Refer to the previous two exercises, where we compared three weight-loss programs using change in weight measured in pounds. Suppose that you decide to instead make the comparison using change in weight measured in kilograms.
loss
14.61
(a) All weight loss values are divided by 2.2. (b) and . The results are identical with the transformed data regarding the test statistic, DF, and -value. Transforming the response variable by a fixed amount has no effect on the ANOVA results.
14.62 Does sleep deprivation affect your work?
Sleep deprivation experienced by physicians during residency training and the possible negative consequences are of concern to many in the health care community. One study of 33 resident anesthesiologists compared their changes from baseline in reaction times on four tasks.15 Under baseline conditions, the physicians reported getting an average of 7.04 hours of sleep. While on duty, however, the average was 1.66 hours. For each of the tasks, the researchers reported a statistically significant increase in the reaction time when the residents were working in a state of sleep deprivation.
14.63 Promotions and the expected price of a product.
If a supermarket product is frequently offered at a reduced price, do customers expect the price of the product to be lower in the future? This question was examined by researchers in a study conducted on students enrolled in an introductory management course at a large midwestern university. For 10 weeks, 160 subjects read weekly ads for the same product. Students were randomly assigned to read one, three, five, or seven ads featuring price promotions during the 10-week period. They were then asked to estimate what the product’s price would be the following week.16 Table 14.1 gives the data.
ppromo
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14.63
(a) All four Normal quantile plots show roughly Normal distributions with only minor departures from Normality.
(b)
Price | |||
---|---|---|---|
Level of Promotions | Mean | Std Dev | |
1 | 40 | 4.2240 | 0.2734 |
3 | 40 | 4.0628 | 0.1742 |
5 | 40 | 3.7590 | 0.2526 |
7 | 40 | 3.5488 | 0.2750 |
(c) Yes, the largest is less than twice the smallest ; . (d) : not all of the are equal, . There are significant price estimate differences among the four groups, which read different numbers of promotions.
14.64 Compare the means.
Refer to the previous exercise. Use the Bonferroni or another multiple-comparisons procedure to compare the group means. Summarize the results and support your conclusions with a graph of the means.
ppromo
14.65 Considering a transformation.
CASE 14.1 In Example 14.8 (pages 723–724), we compared the likelihood to purchase among three groups. We performed ANOVA, even though the data were non-Normal with possible nonconstant variance, because of the robustness of the procedure. For this exercise, let’s consider a transformation.
moral
14.65
(b) The distributions of the transformed data are much more Normal than the original likelihood histograms. The spreads are all very similar now between 0.2 and 0.25. (c) . There are significant differences among groups for the transformed data. The results of this ANOVA are quite similar to the results of the ANOVA on the untransformed data.
14.66 Comparing confidence intervals.
CASE 14.1 Refer to the previous exercise.
moral
Number of promotions |
Expected price (dollars) | |||||||||
1 | 3.78 | 3.82 | 4.18 | 4.46 | 4.31 | 4.56 | 4.36 | 4.54 | 3.89 | 4.13 |
3.97 | 4.38 | 3.98 | 3.91 | 4.34 | 4.24 | 4.22 | 4.32 | 3.96 | 4.73 | |
3.62 | 4.27 | 4.79 | 4.58 | 4.46 | 4.18 | 4.40 | 4.36 | 4.37 | 4.23 | |
4.06 | 3.86 | 4.26 | 4.33 | 4.10 | 3.94 | 3.97 | 4.60 | 4.50 | 4.00 | |
3 | 4.12 | 3.91 | 3.96 | 4.22 | 3.88 | 4.14 | 4.17 | 4.07 | 4.16 | 4.12 |
3.84 | 4.01 | 4.42 | 4.01 | 3.84 | 3.95 | 4.26 | 3.95 | 4.30 | 4.33 | |
4.17 | 3.97 | 4.32 | 3.87 | 3.91 | 4.21 | 3.86 | 4.14 | 3.93 | 4.08 | |
4.07 | 4.08 | 3.95 | 3.92 | 4.36 | 4.05 | 3.96 | 4.29 | 3.60 | 4.11 | |
5 | 3.32 | 3.86 | 4.15 | 3.65 | 3.71 | 3.78 | 3.93 | 3.73 | 3.71 | 4.10 |
3.69 | 3.83 | 3.58 | 4.08 | 3.99 | 3.72 | 4.41 | 4.12 | 3.73 | 3.56 | |
3.25 | 3.76 | 3.56 | 3.48 | 3.47 | 3.58 | 3.76 | 3.57 | 3.87 | 3.92 | |
3.39 | 3.54 | 3.86 | 3.77 | 4.37 | 3.77 | 3.81 | 3.71 | 3.58 | 3.69 | |
7 | 3.45 | 3.64 | 3.37 | 3.27 | 3.58 | 4.01 | 3.67 | 3.74 | 3.50 | 3.60 |
3.97 | 3.57 | 3.50 | 3.81 | 3.55 | 3.08 | 3.78 | 3.86 | 3.29 | 3.77 | |
3.25 | 3.07 | 3.21 | 3.55 | 3.23 | 2.97 | 3.86 | 3.14 | 3.43 | 3.84 | |
3.65 | 3.45 | 3.73 | 3.12 | 3.82 | 3.70 | 3.46 | 3.73 | 3.79 | 3.94 |
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14.67 Word-of-mouth communications.
Consumers often seek opinions on products from other consumers. These word-of-mouth communications are considered valuable because they are thought to be less biased toward the product and more likely to contain negative information. What makes certain opinions with negative information more credible than others? A group of researchers think it may have to do with the use of dispreferred markers. Dispreferred markers indicate that the communicator has just said, or is about to say, something unpleasant or negative. To investigate this they recruited 257 subjects and randomly assigned them to three groups: positive-only review, balanced review, and balanced review with a dispreferred marker. Each subject read about two friends discussing one of their cars. The positive-only group heard that it has been owned for three years, rides well, and gets good gas mileage. The other two groups also hear that the radio and air conditioner cannot run at the same time.17 One of the variables measured is the credibility of the friend describing her car. Here is part of the ANOVA table for these data:
Source | Degrees of freedom |
Sum of squares |
Mean square |
|
Groups | 183.59 | |||
Error | 2643.53 | |||
Total | 256 |
14.67
(a) . (b) : not all of the are equal. (c) . There are significant differences among the groups. (d) .
14.68 Word-of-mouth communications, continued.
Another variable measured in the experiment described in the previous exercise was the likability of the friend describing her car. Higher values of this score indicate a better opinion. Here is part of the ANOVA table for these data:
Source | Degrees of freedom |
Sum of squares |
Mean square |
|
Groups | 9.20 | |||
Error | 0.93 | |||
Total | 256 |
14.69 Writing contrasts.
Return to the eye study described in Example 14.13 (pages 729–731). Let , and represent the mean scores for blue, brown, gaze down, and green eyes.
14.69
(a) . (b) .
14.70 Writing contrasts.
You’ve been asked to help some administrators analyze survey data on textbook expenditures collected at a large public university. Let , and represent the population mean expenditures on textbooks for the freshmen, sophomores, juniors, and seniors, respectively.
14.71 Analyzing contrasts.
Return to the eyes study in Example 14.13 (pages 729–731). Answer the following questions for the two contrasts that you defined in Exercise 14.69.
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14.71
For part a: (a) . (Arguments could be made for a one-sided alternative as well.) (b) . (c) . (d) . There is not enough evidence that the average score of the brown eyes is different than the average score of the other two eye colors. (e) . For part b: (a) . (Arguments could be made for a one-sided alternative as well.) (b) . (c) . (d) . There is not enough evidence that the average score when the model is looking at you is different than the average score when the model is looking down. (e) .
14.72 The effect of increased sample size.
Set the standard deviation for the One-Way ANOVA applet at a middle value and drag the black dots so that the means are roughly 5.00, 4.50, and 5.25.
14.73 Power for the weight-loss study.
You are planning another study of financial incentives for weight-loss study similar to that described in Exercise 14.59 (page 754). The standard deviations given in that exercise range from 9.08 to 11.50. To perform power calculations, assume that the standard deviation is . You have three groups, each with subjects, and you would like to reject the ANOVA when the alternative , and is true. Use software to make a table of powers against this alternative (similar to the table in Example 14.28, page 748) for the following numbers in each group: , and 75. What sample size would you choose for your study?
14.73
Answers will vary; or 75 would be good choices.
DFG | DFE | F* | Power | |
---|---|---|---|---|
35 | 2 | 102 | 3.09 | 0.609 |
45 | 2 | 132 | 3.06 | 0.729 |
55 | 2 | 162 | 3.05 | 0.818 |
65 | 2 | 192 | 3.04 | 0.881 |
75 | 2 | 222 | 3.04 | 0.924 |
14.74 Same power?
Repeat the previous exercise for the alternative , and . Why are the results the same?
14.75 Planning another organic foods study.
Suppose that you are planning a new organic foods study using the same moral outcome variable as described in Exercise 14.51 (page 752). Your study will randomly choose shoppers from a large local grocery store.
14.75
(a) Answers will vary.
DFG | DFE | F* | Power | |
---|---|---|---|---|
10 | 2 | 27 | 3.35 | 0.621 |
15 | 2 | 42 | 3.22 | 0.821 |
20 | 2 | 57 | 3.16 | 0.924 |
25 | 2 | 72 | 3.12 | 0.97 |
30 | 2 | 87 | 3.10 | 0.989 |
(b) For , the power is already 0.924. (c) Answers will vary.
14.76 Planning another restaurant ambiance study.
Exercise 14.54 (page 753) gave data for a study that examined the effect of background music on total food spending at a high-end restaurant. You are planning a similar study but intend to look at total food spending at a more casual restaurant. Use the results of the study described in Exercise 14.54 to plan your study. Write a short one- to two-paragraph proposal detailing your experiment.
14.77 The effect of an outlier.
Refer to the weight-loss study described in Exercise 14.59 (page 754).
loss
14.77
(a) The results are nearly identical as before: .
Loss | |||
---|---|---|---|
Level of Group |
Mean | Std Dev | |
Ctrl | 35 | 0.3543 | 14.6621 |
Grp | 34 | −10.7853 | 11.1392 |
Indiv | 35 | −3.7086 | 9.0784 |
(b) The results are not as significant: .
Loss | |||
---|---|---|---|
Level of Group |
Mean | Std Dev | |
Ctrl | 35 | −1.0086 | 11.5007 |
Grp | 34 | −9.0206 | 18.4317 |
Indiv | 35 | −3.7086 | 9.0784 |
(c) With the first outlier, the means got farther apart, suggesting more significance, but the estimated variance went from 112.81 to 140.65, suggesting a worse fit, which resulted in a very similar and -value. With the second outlier, the means got closer together, suggesting less significance, and the estimated variance went from 112.81 to 183.27, also suggesting a much worse fit, which resulted in a -value much less significant than originally and almost not significant. In both cases, the estimate variance got much worse, so generally outliers should make it harder to so see significance. But as shown in the first example, if the outlier pulls the means farther apart, this may not be true. (d) We can see the incorrect observation because the standard deviation for the group with the outlier becomes much larger than the standard deviations for the other groups.
14.78 Changing units and ANOVA.
Refer to Exercise 14.61 (page 754). Suggest a general conclusion about what happens to the test statistic, degrees of freedom, -value, and conclusion when you perform ANOVA on data after changing the units through a linear transformation , where and are chosen constants. In Exercise 14.61, the constants were and .
14.79 Regression or ANOVA?
Refer to the price promotion study that we examined in Exercise 14.63 (pages 754–755). The explanatory variable in this study is the number of price promotions in a 10-week period, with possible values of 1, 3, 5, and 7. ANOVA treats the explanatory variable as categorical—it just labels the groups to be compared. In this study, the explanatory variable is, in fact, quantitative, so we could use simple linear regression rather than one-way ANOVA if there is a linear pattern.
ppromo
758
14.79
(a) The pattern is roughly linear. (b) Testing the slope equal to zero is the test of no linear relationship. (c) . There is a significant linear relationship between price and the number of promotions. Because the relationship is linear as shown in part (a), the regression is preferable because it not only says that the number of promotions affects price, but also describes the relationship as a linear one, in which we can quantify the relationship by interpreting the slope. In this problem, for each additional promotion read, the expected price goes down by 0.11648.
14.80 Pooling variances, continued.
Refer to Exercise 14.43 (page 750). Based on our rule of thumb (page 720), we consider it reasonable to use the assumption of equal standard deviations in our analysis. However, when sample sizes vary substantially, we need to use caution. As demonstrated in Exercise 14.43, the pooled standard deviation is closer to the standard deviation of the third group than any of the other three standard deviations. Assuming these sample standard deviations are close to the population standard deviations, explain the impact of using the pooled standard deviation on the coverage of the simultaneous confidence intervals between means. In particular, would you expect the coverage of the interval for the difference between the first and second group to be larger or smaller than ? Explain your answer.