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Chapter 19 Analysis of deviation

26. When the r population means are different, it is likely that the average error:
A) is relatively large compared to the average treatment
B) is relatively small compared to the average treatment
C) is about equal to the average treatment
D) none of the above
E) differs, depending on the populations involved
Answer: B Type: Concept Difficulty: Medium
27. How many degrees of freedom are there in a test comparing five populations with
each sample containing 37 observations?
A) 185
B) 4
C) 36
D) 32
E) none of the above
Answer: E Type: Concept Difficulty: Medium
Use the following to answer questions 28-30:
An electronics manufacturer was evaluating whether customers' satisfaction depended on
which configuration of personal media player they purchased. In a random sample of
customers, 12 had purchased cassette players, 15 had purchased CD players, and 11 had
purchased MP3 players. Each customer sampled was measured on a satisfaction index, and in
the manufacturer's ANOVA, SSE = 1,490 and SSTR = 760.
28. Compute the F test statistic for this hypothesis test.
A) 0.112
B) 8.926
C) 1.96
D) 9.69
E) none of the above
Answer: B Type: Computation Difficulty: Medium

Aczel, Complete Business Statistics, Sixth Edition

Chapter 9 Analysis of Variance


29. Write the null hypothesis for this test.
A) H0: not all the population means are equal
B) H0: at least one of the population means is not equal to the others
C) H0: 1 = 2 = 3
D) H0: 1 - 2- 3 0
E) none of the above
Answer: C Type: Concept Difficulty: Easy
30. Find the critical value to test this hypothesis at = 0.05.
A) 1.96
B) between 19.46 and 19.47
C) 1.645
D) between 3.23 and 3.32
E) none of the above
Answer: D Type: Computation Difficulty: Medium
Use the following to answer questions 31-33:
A survey is conducted to find whether students like a particular type of music more than
another: rock, pop, classical, and jazz. Fifth randomly selected students were asked to rate one
particular type of music, with SSTR = 28,590 and SST = 40,220.
31. Write the null hypothesis to test whether students like these types of music equally, or
whether there is a preference.
A) H0: 1= 2 = 3 = 4
B) H0: 1= 2 = 3 = 4 0
C) H0: s1= s2 = s3 = s4
D) H0: at least one of the population means is different
E) none of the above
Answer: A Type: Concept Difficulty: Easy
32. How many degrees of freedom does the sum of squares for treatments have?
A) 4
B) 3
C) 0
D) 49
E) 46

Aczel, Complete Business Statistics, Sixth Edition

Chapter 19 Analysis of deviation


Answer: B Type: Computation Difficulty: Medium

Aczel, Complete Business Statistics, Sixth Edition

Chapter 9 Analysis of Variance


33. Compute the test statistic for this analysis of variance test.
A) 252.826
B) 11.61
C) 37.69
D) 10.89
E) none of the above
Answer: C Type: Computation Difficulty: Hard
Use the following to answer questions 34-37:
Three companies recently were audited in a study of travel and entertainment expense.
Twenty (20) months of expenses were randomly sampled from each company, with
observations as follows:
A
1 1 6 .2
7 8 .1
9 8 .1
9 0 .0
9 1 .4
8 8 .6
9 9 .1
1 0 4 .7
1 1 3 .9
8 3 .3
1 0 2 .8
1 0 1 .0
1 0 9 .2
1 0 4 .3
1 0 2 .2
8 9 .5
9 4 .8
9 0 .2
1 1 1 .8
7 9 .9

C om pany
B
1 1 4 .8
1 1 4 .6
1 0 2 .7
1 0 7 .8
1 0 2 .7
1 1 8 .3
1 2 0 .6
1 0 4 .2
1 0 5 .0
1 0 0 .0
1 0 8 .7
1 2 3 .5
1 1 5 .9
9 2 .8
9 6 .0
1 2 8 .9
1 0 4 .6
9 7 .4
1 0 2 .9
1 3 5 .0

C
9 8 .3
1 0 3 .3
1 1 1 .0
1 0 2 .3
1 0 2 .3
8 8 .5
9 9 .6
1 1 3 .6
1 0 6 .9
9 9 .4
8 9 .9
1 0 7 .2
9 5 .5
1 1 0 .9
1 0 0 .1
1 0 8 .8
9 5 .4
9 8 .1
9 0 .2
1 0 2 .8

Aczel, Complete Business Statistics, Sixth Edition

Chapter 19 Analysis of deviation

34. What is the SSTR for these observations?


A) 7,322.92
B) 5,715.09
C) 1,607.83
D) 803.91
E) 124.12
Answer: C Type: Computation Difficulty: Hard
35. What is the SSE for these observations?
A) 7,322.92
B) 5,715.09
C) 1,607.83
D) 803.91
E) 124.12
Answer: B Type: Computation Difficulty: Hard
36. What would be a critical value for the F-ratio for an ANOVA on these observations?
A) 2.77
B) 2.89
C) 3.16
D) 6.51
E) 9.96
Answer: C Type: Computation Difficulty: Medium
37. What is the observed F-ratio for the ANOVA on these observations?
A) 0.2813
B) 0.8078
C) 3.1643
D) 5.2510
E) 8.0179
Answer: E Type: Computation Difficulty: Hard

Aczel, Complete Business Statistics, Sixth Edition

Chapter 9 Analysis of Variance


38. Three companies recently were audited in a study of travel and entertainment expense.
Twenty (20) months of expenses were randomly sampled from each company, with
observations as follows:
A
1 1 6 .2
7 8 .1
9 8 .1
9 0 .0
9 1 .4
8 8 .6
9 9 .1
1 0 4 .7
1 1 3 .9
8 3 .3
1 0 2 .8
1 0 1 .0
1 0 9 .2
1 0 4 .3
1 0 2 .2
8 9 .5
9 4 .8
9 0 .2
1 1 1 .8
7 9 .9

C om pany
B
1 1 4 .8
1 1 4 .6
1 0 2 .7
1 0 7 .8
1 0 2 .7
1 1 8 .3
1 2 0 .6
1 0 4 .2
1 0 5 .0
1 0 0 .0
1 0 8 .7
1 2 3 .5
1 1 5 .9
9 2 .8
9 6 .0
1 2 8 .9
1 0 4 .6
9 7 .4
1 0 2 .9
1 3 5 .0

C
9 8 .3
1 0 3 .3
1 1 1 .0
1 0 2 .3
1 0 2 .3
8 8 .5
9 9 .6
1 1 3 .6
1 0 6 .9
9 9 .4
8 9 .9
1 0 7 .2
9 5 .5
1 1 0 .9
1 0 0 .1
1 0 8 .8
9 5 .4
9 8 .1
9 0 .2
1 0 2 .8

The observed F-ratio for the ANOVA on these observations is 8.0179.


Which of the following is the most likely outcome of a Tukey's Pairwise Comparison
test?
A) At least one pairwise comparison would be likely to result in a statistically
significant difference
B) Every possible pairwise comparison would be likely to result in a statistically
significant difference
C) No pairwise comparison would be likely to result in a statistically significant
difference
D) Both A and B are correct
E) Neither A, B nor C is correct
Answer: A Type: Concept Difficulty: Easy

Aczel, Complete Business Statistics, Sixth Edition

Chapter 19 Analysis of deviation

Use the following to answer questions 39-40:


Standardized stock price indicators in three different countries over a week are listed below.
An analyst is interested in knowing if the stock markets of these three countries are dependent
on one another. The ANOVA table is given.
8
8
9
9
8
9

I
90
99
00
05
71
10

9
9
8
9
8
9

II
00
00
87
06
93
00

III
905
900
896
928
899
934

39. What are the degrees of freedom for treatment, error and total respectively?
A) 17, 15, 2
B) 15, 17, 2
C) 2, 17, 15
D) 2, 15, 17
E) none of the above
Answer: D Type: Computation Difficulty: Medium
40. Compute the MSTR and MSE respectively.
A) 168, 374.06
B) 374.06, 168
C) 157, 384.05
D) 361.03, 165.03
Answer: B Type: Computation Difficulty: Medium
41. If the p-value for this test is 0.143, at an 0.05 level of significance, are the means for
these three stock markets equal or significantly different?
A) at least one of the three means is different from the other two
B) all these means are significantly different
C) insufficient evidence to indicate that the three means are not the same
D) further information is required to make a decision
E) none of the above
Answer: C Type: Concept Difficulty: Medium

Aczel, Complete Business Statistics, Sixth Edition

Chapter 9 Analysis of Variance


Use the following to answer questions 42-45:
A company is interested in testing customer satisfaction with five department stores that it
owns. They are also interested in determining whether or not differences exist in the average
consumer satisfaction with the three main departments within each store: sportswear,
formalwear and businesswear. Fifteen groups of 60 randomly chosen consumers are assigned
to each combination cell. The results are analyzed with a two-way ANOVA, shown below.
S ou rce of
V a r ia tio n
S to re
D e p a rtm e n t
In te ra c tio n
E rro r
T o ta l

Sum of
Squares
217
289
342
7187

D egrees of
F reed om

M ean
Square

42. Compute the mean square for the treatment, store.


A) 54.25
B) 144.50
C) 6.68
D) 43.4
E) none of the above
Answer: A Type: Computation Difficulty: Medium
43. Compute the F ratio for the interaction.
A) 6.68
B) 5.26
C) 17.795
D) 8.12
E) none of the above
Answer: B Type: Computation Difficulty: Medium
44. How many degrees of freedom does SSE have?
A) 15
B) 899
C) 900
D) 885
E) none of the above
Answer: D Type: Computation Difficulty: Medium

Aczel, Complete Business Statistics, Sixth Edition

F R a tio

Chapter 19 Analysis of deviation

45. At = 0.05, is there interaction?


A) yes
B) no
C) insufficient information to determine
D) some
E) none of the above
Answer: A Type: Computation Difficulty: Medium
Use the following to answer questions 46-48:
A research company is interested in testing whether three medications on the market are about
equally effective reducing high blood pressure. As a part of the study, a random sample of 225
people is chosen. Each person is given one of the medications to use for a month, and their
blood pressure is recorded. To reduce experimental errors, the sample is divided into 75
groups of three people each. The results are shown below.
S ou rce of
V a r ia tio n
B lo c k s
T re a tm e n ts
E rro r
T o ta l

Sum of
Squares
1 ,9 8 7
2 ,6 7 1
4 ,8 2 5
9 ,4 8 3

D egrees of
F reed om

M ean
Square

F R a tio

224

46. What are the degrees of freedom for the sum of squares for the blocks?
A) 74
B) 2
C) 148
D) 3
E) none of the above
Answer: A Type: Computation Difficulty: Medium
47. How many treatments were there in this test?
A) 75
B) 225
C) 3
D) 224
E) none of the above
Answer: C Type: Computation Difficulty: Medium

Aczel, Complete Business Statistics, Sixth Edition

Chapter 9 Analysis of Variance

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Aczel, Complete Business Statistics, Sixth Edition

Chapter 19 Analysis of deviation

48. Compute the F ratio for this ANOVA.


A) 49.74
B) 0.80
C) 40.97
D) 32.60
E) none of the above
Answer: C Type: Computation Difficulty: Hard
49. In general, the degrees of freedom associated with the sum of squares error term, in an
ANOVA using blocking is:
A) (n - r)
B) (r - 1)
C) (n - 1)
D) (n - 1)(r - 1)
E) none of the above
Answer: D Type: Computation Difficulty: Medium
50. A blocking design that uses two blocking variables is called a:
A) one-way ANOVA
B) repeated measures design
C) completely randomized block
D) Latin square design
E) randomized complete block design
Answer: D Type: Concept Difficulty: Medium

Aczel, Complete Business Statistics, Sixth Edition

11

Chapter 9 Analysis of Variance


51. A manager in a large company rates his workers based on two factors: productivity
and independence. Following are the results of an ANOVA testing employee
performance.
V a r ia b le
P ro d u c tiv ity
In d ep e n d e n ce
In te ra c tio n

D F
4
2
8

F -v a lu e
1 .3 9
4 .2 7
0 .7 2 3

p -v a lu e
0 .6 2 1 4
0 .0 0 3 4
0 .0 0 1 4

How many levels of productivity and independence were studied?


A) productivity = 8, independence = 6
B) productivity = 4, independence = 2
C) productivity = 5, independence = 3
D) productivity = 3, independence = 1
E) none of the above
Answer: C Type: Concept Difficulty: Medium
Use the following to answer questions 52-55:
The management of an organization wants to test to see whether the rate of turnover of
employees is the same in all the departments. Samples over the last year show the following
as the number of employees having left the company:
Production:
Marketing:
Finance:
Accounting:

5, 6, 3, 4, 6, 6
3, 4, 4, 4, 3, 5
3, 3, 3, 2, 4, 5
2, 3, 3, 5, 6, 4

The ANOVA table is shown below:


S ou rce of
V a r ia tio n
T re a tm e n t
E rro r
T o ta l

12

Sum of
Squares
9 .0 0
2 7 .0 0
3 6 .0 0

D egrees of
F reed om

M ean
Square
1 .3 5

Aczel, Complete Business Statistics, Sixth Edition

F R a tio

Chapter 19 Analysis of deviation

52. How many degrees of freedom are associated with the sum of squares for treatments?
A) 3
B) 4
C) 5
D) 23
E) none of the above
Answer: A Type: Computation Difficulty: Medium
53. State the null hypothesis for this ANOVA.
A) H0: 1 - 2 - 3 - 4 0
B) H0: all of the population means are different
C) H0: at least one of the population means is different
D) H0: 1 = 2 = 3 = 4
E) none of the above
Answer: D Type: Concept Difficulty: Medium
54. If the p-value for this ANOVA is 0.117, what is the conclusion, testing at = 0.05?
A) reject the null hypothesis
B) do not reject the null hypothesis
C) not enough information to make a decision
D) at least one of the population means is significantly different
E) none of the above
Answer: B Type: Concept Difficulty: Medium
55. Construct a 95% confidence interval on the population mean of the Finance
department.
A) 3.333 (1.725)(1.033/6)
B) 3.333 (2.571)(1.033/2.449)
C) 3.333 (1.725)(1.033/2.449)
D) 3.333 (2.086)(1.033/2.449)
E) none of the above
Answer: D Type: Computation Difficulty: Hard

Aczel, Complete Business Statistics, Sixth Edition

13

Chapter 9 Analysis of Variance


56. In an ANOVA, we find that the p-value is 0.003. We therefore conclude that:
A) there is no statistical evidence that any population mean is different from any other
B) no two population means are equal
C) no two variances are equal
D) the null hypothesis should be accepted
E) there is strong statistical evidence that not all the population means are equal
Answer: E Type: Concept Difficulty: Medium
57. In an ANOVA with r = 5 groups and a total sample size of 65, using = 0.05, the
critical point for the distribution to be used is:
A) 1.70
B) 2.53
C) 2.064
D) 1.96
E) 1.645
Answer: B Type: Computation Difficulty: Medium
58. When all members of every block are randomly assigned to all treatments, the design
is called:
A) repeated measures design
B) Tukey design
C) Latin square design
D) one-way ANOVA
E) randomized complete block design
Answer: E Type: Concept Difficulty: Medium

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Aczel, Complete Business Statistics, Sixth Edition

Chapter 19 Analysis of deviation

59. Given the following ANOVA table, with N = 55:


S o u rc e o f
V a ria tio n
F a c to r A
F a c to r B
In te ra c tio n
E rro r
T o ta l

Sum of
S q u a re s
127
184
253
7 6 .8

D e g re e s o f
F re e d o m
3
7

M ean
S q u a re

F R a tio

Compute the F ratio for the interaction.


A) 12.0476
B) 3.608
C) 1.611
D) 3.339
E) none of the above
Answer: B Type: Computation Difficulty: Hard
60. Which of the following is the correct F ratio in the one-way ANOVA?
A) MSA/MSE
B) MSBL/MSE
C) MSTR/MSE
D) MSE/MSTR
E) MSE/MST
Answer: C Type: Concept Difficulty: Medium
Use the following to answer questions 61-65:
You are interested in the effect of pay on the productivity of your employees. To test the
effect you setup a study. The results follow:
S ou rce of
V a r ia tio n
P a y (A )
E rro r
T o ta l

D egrees of
F reedom
2
36
38

Sum of
S q u ares
9 9 .5 1
1 9 2 .0 0
2 9 1 .5 1

Aczel, Complete Business Statistics, Sixth Edition

M ean
Square
4 6 .7 6
5 .3 3

F R a tio
9 .3 3

P
< .0 1

15

Chapter 9 Analysis of Variance


61. What is your null hypothesis?
A) More pay will lower or not affect productivity.
B) More pay will raise or not affect productivity.
C) Pay will not affect productivity.
D) All of the above
E) None of the above
Answer: C Type: Concept Difficulty: Easy
62. What is your alternate hypothesis?
A) More pay will lower or not affect productivity.
B) More pay will raise or not affect productivity.
C) Pay will not affect productivity.
D) All of the above
E) None of the above
Answer: E Type: Concept Difficulty: Easy
63. How many levels of treatment are in the experiment?
A) 1
B) 2
C) 3
D) All of the above
E) None of the above
Answer: C Type: Computation Difficulty: Easy
64. How many subjects were in the study?
A) 38
B) 39
C) 40
D) All of the above
E) None of the above
Answer: B Type: Computation Difficulty: Easy

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Aczel, Complete Business Statistics, Sixth Edition

Chapter 19 Analysis of deviation

65. With an of .05 what is your decision?


A) Reject the null and accept the alternative hypothesis.
B) Accept the null hypothesis.
C) Reject the alternative and accept the null hypothesis.
D) All of the above
E) None of the above
Answer: A Type: Concept Difficulty: Easy
66. If, in a two-way ANOVA, Factor A has five levels and Factor B has three levels, then
the number of degrees of freedom for the interaction term is:
A) 2
B) 4
C) 8
D) 12
E) 15
Answer: C Type: Computation Difficulty: Easy
67. In a _____________ effects model, levels of the factor to be studied are decided upon
in advance; in a _____________ effects model, only a subset of all possible factor
levels are ultimately considered.
A) Random; Fixed
B) Blocked; Random
C) Fixed; Blocked
D) Fixed; Random
E) Blocked; Fixed
Answer: D Type: Concept Difficulty: Easy
68. One factor with four levels is being studied via ANOVA. The total sample size is 24,
with an equal number of observations for each factor level. A significant F-ratio is
observed and a Tukey's Pairwise Comparison will be conducted as a follow-up. What
is the appropriate critical q value for this exercise (assume = 0.05)?
A) 3.58
B) 3.90
C) 3.96
D) 4.64
E) 5.02
Answer: C Type: Computation Difficulty: Easy

Aczel, Complete Business Statistics, Sixth Edition

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Chapter 9 Analysis of Variance

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Aczel, Complete Business Statistics, Sixth Edition

Chapter 19 Analysis of deviation

Use the following to answer questions 69-70:


A consulting firm is studying the effects of leadership structure on team performance. Four
structures are considered, and seven teams are randomly assigned to each structure type.
Results on a proprietary performance index are as follows:
S tru c tu re
A
3 6 .9
3 5 .2
3 6 .6
4 0 .8
3 9 .0
3 5 .6
4 0 .9

3
3
3
3
3
3
4

B
6 .6
8 .0
4 .8
4 .9
9 .2
9 .4
2 .0

C
3 1 .8
3 1 .5
2 5 .7
3 0 .5
3 3 .3
2 3 .5
2 9 .5

3
2
2
2
3
2
3

D
4 .0
5 .1
3 .9
8 .5
4 .2
9 .6
3 .9

70. As a followup, the consulting firm wishes to know which structure to emphasize.
Conduct a Tukey's Pairwise Comparison as an input into this decision
Answer:
Tukey's HSD = 7.922 = q0.05*[28.89/7]
The sample means for the leadership structures are as follows:
A: x-bar = 37.9
B: x-bar = 37.8
C: x-bar = 29.4
D: x-bar = 29.9
A is significantly higher than both C & D
B is significantly higher than both C & D
A is not significantly different from B
C is not significantly different from D
It appears that the consulting firm should choose either structure A or B.
71. In a two-way ANOVA, Factor A has four levels and Factor B has three levels. There
were 10 observations for every combination of Factors A and B. Sums of squares were
as follows:

Aczel, Complete Business Statistics, Sixth Edition

19

Chapter 9 Analysis of Variance


S o u rc e
F a c to r A
F a c to r B
E rro r
T o ta l

SS
4
3
1 6 ,8
2 4 ,2

84
26
22
44

What can be concluded in this instance?


Answer: The ANOVA table is as follows:
S o u rc e
F a c to r A
F a c to r B
In te ra c t
E rro r
T o ta l

d .f .
3
2
6
108
119

SS
48
32
661
1682
2424

4
6
2
2
4

M S
1 6 1 .3 3
1 6 3 .0 0
1 1 0 2 .0 0
1 5 5 .7 6

F
1 .0 4
1 .0 5
7 .0 7 * *

**p-value < 0.001


Because the interaction term is significant, the insignificant finds for Factors A and B
are of little concern. Essentially, these findings indicate that Factors A and B are most
important to consider in combination, not in isolation.

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Aczel, Complete Business Statistics, Sixth Edition

Chapter 19 Analysis of deviation

72. You are interested in the effect of reward vs. punishment on communications with
employees. A recent study which analyzes the effect of reward vs. punishment on
communication yields the following results.
Summary of the Analysis of Variance of the Effect of Reward and Punishment on
Employee Communication
S o u rc e o f V a ria tio n
R e w a rd -P u n is h m e n t
E rro r
T o ta l

Sum of
S q u a re s
2 ,4 2 0
7 ,2 6 0
9 ,6 8 0

D eg rees o f
F re e d o m
2
27
29

M ean
S q u a re
1 ,2 1 0 .0
2 6 8 .9

F R a tio
4 .5

P
0 .0 1 9 9

A) What are the dependent and independent variables?


B) What is the null and alternate hypotheses?
C) How many levels were in the treatment?
D) How many subjects were in the study?
E) What is your decision?
Answer:
A) Independent: Reward vs. Punishment, Dependent: Communication
B) Null: Reward has no effect on communication.
Alternative: Reward has an effect on communication.
C) 3
D) 30
E) Reject the null hypothesis, reward and punishment have an effect on
communication.
Type: Computation Difficulty: Easy

Aczel, Complete Business Statistics, Sixth Edition

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