With the increased cost in fuel, there has been a shift in the buying habits - 6658

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With the increased cost in fuel, there has been a shift in the buying habits of new car purchasers. A local car dealer was interested in determining if there was a significant difference in fuel efficiencies between three sizes of car: compact, midsize and large. The manager did a random sample of 27 cars. An ANOVA was used as the analysis tool using a significant level of .01. The results of the ANOVA were as follows: 

Source of VariationSSdfMSFp-value

Between Groups130.44265.227.970.00017

Within Groups196.24248.18

Total326.6836

 

 

The manger’s decision would be

 

A.   the mean fuel efficiency of the car cannot be compared

 

B.   this was not the correct test for this data; a series of student t tests would have been better

C.   to accept the null hypothesis; there is not a significant difference between cars

 

D.   to reject the null hypothesis; there is a significant difference between cars

 

Solution Description

With the increased cost in fuel, there has been a shift in the buying habits of new car purchasers. A local car dealer was interested in determining if there was a significant difference in fuel efficiencies between three sizes of car: compact, midsize and large. The manager did a random sample of 27 cars. An ANOVA was used as the analysis tool using a significant level of .01. The results of the ANOVA were as follows:

 

Source of Variation

SS

df