Chapter 12

Analysis of Variance
True/False
1. The F distribution's curve is positively skewed.
Answer: True
Difficulty: Medium
Goal: 1

2. The test statistic used in ANOVA is Student's t.

Answer: False
Difficulty: Easy
Goal: 1

3. There is one, unique F distribution for a F-statistic with 29 degrees of freedom in the numerator and 28
degrees of freedom in the denominator.
Answer: True
Difficulty: Medium
Goal: 1
AACSB: AS

4. One characteristic of the F distribution is that F cannot be negative.

Answer: True
Difficulty: Easy
Goal: 1

5. One characteristic of the F distribution is that the computed F can only range between -1 and +1.
Answer: False
Difficulty: Easy
Goal: 1

6. The F distribution is positively skewed and its values may range from 0 to plus infinity.
Answer: True
Difficulty: Easy
Goal: 1

7. The shape of the F distribution is determined by the degrees of freedom for the F-statistic, one for the
numerator and one for the denominator.
Answer: True
Difficulty: Medium
Goal: 1

8. Unlike Student's t distribution, there is only one F distribution.

Answer: False
Difficulty: Easy
Goal: 1

9. Like Student's t distribution, a change in the degrees of freedom causes a change in the shape of the F
distribution.
Answer: True
Difficulty: Easy
Goal: 1

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12

10. If the computed value of F is 0.99 and the critical value is 3.89, we would not reject the null
hypothesis.
Answer: True
Difficulty: Medium
Goal: 2

11. For the hypothesis test, H o : 1 2 , with n1 = 10 and n2 = 10, the F-test statistic is 2.56. At the
0.01 level of significance, we would reject the null hypothesis.
Answer: False
Difficulty: Hard
Goal: 2
AACSB: AS
2

12. For the hypothesis test, H o : 1 2 , with n1 = 4 and n2 = 4, the F-test statistic is 50.01. At the
0.01 level of significance, we would reject the null hypothesis.
Answer: True
Difficulty: Hard
Goal: 2
2

13. For the hypothesis test, H o : 1 2 , with n1 = 7 and n2 = 7, the F-test statistic is 2.56. At the
0.05 level of significance, we would reject the null hypothesis.
Answer: False
Difficulty: Hard
Goal: 2
2

14. For the hypothesis test, H o : 1 2 , with n1 = 9 and n2 = 9, the F-test statistic is 4.53. At the
0.05 level of significance, we would reject the null hypothesis.
Answer: True
Difficulty: Hard
Goal: 2
2

15. To employ ANOVA, the populations being studied must be approximately normally distributed.
Answer: True
Difficulty: Easy
Goal: 3

16. To employ ANOVA, the populations should have approximately equal standard deviations.
Answer: True
Difficulty: Easy
Goal: 3

17. In an ANOVA table, k represents the total number of sample observations and n represents the total
number of treatments.
Answer: False
Difficulty: Medium
Goal: 4

18. In an ANOVA table, k represents the number of treatments, b represents the number of blocks, and n
represents the total number of sample observations.
Answer: True
Difficulty: Medium
Goal: 4
19. The alternate hypothesis used in ANOVA is 1 2 3 .
Answer: False
Difficulty: Medium
Goal: 5

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20. The alternate hypothesis for ANOVA states that not all the means are equal.
Answer: True
Difficulty: Medium
Goal: 5

21. For an ANOVA test, rejection of the null hypothesis does not identify which treatment means differ
significantly.
Answer: True
Difficulty: Medium
Goal: 5
AACSB: AS

22. If the computed value of F is 4.01 and the critical value is 2.67, we would conclude that all the
population means are equal.
Answer: False
Difficulty: Medium
Goal: 5

23. If the computed value of F is 11.1 and the 0.05 level is used, we would assume that a mistake in
arithmetic has been made.
Answer: False
Difficulty: Medium
Goal: 5

24. If we want to determine which treatment means differ, we compute a confidence interval for the
difference between each pair of means.
Answer: True
Difficulty: Easy
Goal: 6

25. If a confidence interval for the difference between a pair of treatment means includes 0, then there is
no difference in the pair of treatment means.
Answer: True
Difficulty: Medium
Goal: 6

26. If the endpoints of a confidence interval for the difference between a pair of treatment means are both
positive numbers, then the treatment means are not different.
Answer: False
Difficulty: Medium
Goal: 6

27. A treatment is a specific source of variation in a set of data.

Answer: True
Difficulty: Medium
Goal: 7

28. A blocking effect is a specific source of variation in a set of data.

Answer: True
Difficulty: Medium
Goal: 7

29. When a blocking effect is included in an ANOVA, the result is a smaller error sum of squares.
Answer: True
Difficulty: Medium
Goal: 7

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30. When a blocking effect is included in an ANOVA, two sources of variation are reported: treatment
variation and block variation.
Answer: False
Difficulty: Medium
Goal: 7

31. When a blocking effect is included in an ANOVA, the analysis is more likely to detect differences in
the treatment means.
Answer: True
Difficulty: Hard
Goal: 7

32. The F-statistic to test for a blocking effect is computed as the ratio of the Treatment Mean Square and
the Block Mean Square.
Answer: False
Difficulty: Hard
Goal: 7

33. In a two-way ANOVA, the sum of the treatment, block, and error degrees of freedom equal the total
degrees of freedom.
Answer: True
Difficulty: Medium
Goal: 7

34. In a two-way ANOVA, the sum of the treatment and block mean squares equals the error mean
square.
Answer: False
Difficulty: Medium
Goal: 7

35. In a two-way ANOVA, the sum of the treatment, block, and error sum of squares equals the total sum
of squares.
Answer: True
Difficulty: Medium
Goal: 7
36. In a two-way ANOVA with interaction, there are two factor effects and an interaction effect.
Answer: True
Difficulty: Medium
Goal: 8
37. In a two-way ANOVA with treatment and block effects, an interaction effect is also included.
Answer: False
Difficulty: Hard
Goal: 8
38. In an interaction plot, parallel lines are an indication that there is no interaction effect.
Answer: True
Difficulty: Medium
Goal: 8
39. Interaction between two factors occurs when the effect of one factor on the response variable is the
same for any value of another factor.
Answer: False
Difficulty: Hard
Goal: 8

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Multiple Choice

40. An F statistic is:

A) a ratio of two means.
B) a ratio of two variances.
C) the difference between three means.
D) a population parameter.
Answer: B
Difficulty: Easy
Goal: 1

41. What distribution does the F distribution approach as the sample size increases?
A) Binomial
B) Normal
C) Poisson
D) Exponential
Answer: B
Difficulty: Medium
Goal: 1
AACSB: AS

42. Which statement is correct about the F distribution?

A) Cannot be negative
B) Cannot be positive
C) Is the same as the t distribution
D) Is the same as the z distribution
Answer: A
Difficulty: Medium
Goal: 1

43. Analysis of variance is used to

A) compare nominal data.
B) compute t test.
C) compare population proportion.
D) simultaneously compare several population means.
Answer: D
Difficulty: Medium
Goal: 3

44. A large department store examined a sample of the 18 credit card sales and recorded the amounts
charged for each of three types of credit cards: MasterCard, Visa and Discover. Six MasterCard sales,
seven Visa and five Discover sales were recorded. The store used ANOVA to test if the mean sales for
each credit card were equal. What are the degrees of freedom for the F statistic?
A) 18 in the numerator, 3 in the denominator
B) 3 in the numerator, 18 in the denominator
C) 2 in the numerator, 15 in the denominator
D) 6 in the numerator, 15 in the denominator
Answer: C
Difficulty: Medium
Goal: 4
AACSB: AS

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45. Suppose that an automobile manufacturer designed a radically new lightweight engine and wants to
recommend the grade of gasoline that will have the best fuel economy. The four grades are: regular,
below regular, premium, and super premium. The test car made three trial runs on the test track using
each of the four grades and the miles per gallon recorded. At the 0.05 level, what is the critical value of F
used to test the hypothesis that the miles per gallon for each fuel is the same.

R e g u la r
3 9 .3 1
3 9 .8 7
3 9 .8 7
A)
B)
C)
D)

K ilo m e te rs p e r lite r
B e lo w R e g u la r P re m iu m
3 6 .6 9
3 8 .9 9
4 0 .0 0
4 0 .0 2
4 1 .0 1
3 9 .9 9

Super
40
39
39

P re m iu m
.0 4
.8 9
.9 3

1.96
4.07
2.33
12.00

Answer: B

Difficulty: Medium

Goal: 4

46. Three different fertilizers were applied to a field of celery. In computing F, how many degrees of
freedom are there in the numerator?
A) 0
B) 1
C) 2
D) 3
Answer: C
Difficulty: Medium
Goal: 4

47. Suppose a package delivery company purchased 14 trucks at the same time. Five trucks were
purchased from manufacturer A, four from B and five from manufacturer C. The cost of maintaining
each truck was recorded. The company used ANOVA to test if the mean maintenance cost of the trucks
from each manufacturer were equal. To apply the F test, how many degrees of freedom are in the
denominator?
A) 2
B) 3
C) 11
D) 14
Answer: C
Difficulty: Medium
Goal: 4

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48. In an effort to determine the most effective way to teach safety principles to a group of employees,
four different methods were tried. Some employees were given programmed instruction booklets and
worked through the course at their own pace. Other employees attended lectures. A third group watched
a television presentation, and a fourth group was divided into small discussion groups. A high of 10 was
possible. A sample of five tests was selected from each group. The test grade results were:

S a m p le N u m b e r
1
2
3
4
5

P ro g ra m m e d In s tru c tio n
6
7
6
5
6

L e c tu re
8
5
8
6
8

TV
7
9
6
8
5

G ro u p D is c u s s io n
8
5
6
6
5

At the 0.01 level, what is the critical value?

A) 1.00
B) 1.96
C) 3.24
D) 5.29
Answer: D
Difficulty: Medium
Goal: 4
49. In ANOVA, an F statistic is used to test a null hypothesis such as:
2
2
2
A) H o : 1 2 3
2
2
2
B) H o : 1 2 3

C) H o : 1 2 3
D) H o : 1 2 3
Answer: C
Difficulty: Easy

Goal: 4

50. An electronics company wants to compare the quality of their cell phones to the cell phones from
three competitors. They sample 10 phones from each company and count the number of defects for each
phone. If ANOVA were used to compare the average number of defects, the treatments would be defined
as:
A) the number of cell phones sampled.
B) the average number of defects.
C) The total number of phones
D) The four companies.
Answer: D
Difficulty: Easy
Goal: 5

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51. Several employees have submitted different methods of assembling a subassembly. Sample data for
each method are:

S a m p le N u m b e r
1
2
3

L i n d 's M e t h o d
1 6 .6
1 7 .0
1 6 .9

How many treatments are there?

A) 3
B) 4
C) 12
D) 0
Answer: B
Difficulty: Medium

M in u te s R e q u ire d fo r A s s e m b ly
S z a b o 's M e t h o d C a r l 's M e t h o d
2 2 .4
3 1 .4
2 1 .5
3 3 .4
2 2 .6
3 0 .1

M a n l e y 's
18
19
17

M e th o d
.4
.6
.6

Goal: 5

52. If an ANOVA test is conducted and the null hypothesis is rejected, what does this indicate?
A) Too many degrees of freedom
B) No difference between the population means
C) A difference between at least one pair of population means
D) None of the above
Answer: C
Difficulty: Medium
Goal: 5
Scrambling: Locked
53. A preliminary study of hourly wages paid to unskilled employees in three metropolitan areas was
conducted. Seven employees were included from Area A, 9 from Area B and 12 from Area C. The test
statistic was computed to be 4.91. What can we conclude at the 0.05 level?
A) Mean hourly wages of unskilled employees all areas are equal
B) Mean hourly wages in at least 2 metropolitan areas are different
C) More degrees of freedom are needed
D) None of these is correct
Answer: B
Difficulty: Medium
Goal: 5
Scrambling: Locked
54. In ANOVA analysis, when the null hypothesis is rejected, we can find which means are different by
A) constructing confidence intervals.
B) adding another treatment.
C) doing an additional ANOVA.
D) doing a t test.
Answer: A
Difficulty: Medium
Goal: 6

55. In a two-way ANOVA, a blocking variable is used to

A) increase the error sum of squares.
B) decrease the error sum of squares.
C) increase the treatment sum of squares.
D) decrease the treatment sum of squares.
Answer: B
Difficulty: Easy
Goal: 7
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56. In a two-way ANOVA with interaction, a significant interaction term indicates that
A) the response variable is interactive.
B) a blocking factor is present.
C) both factors are unrelated.
D) both factors have a combined effect on the response variable.
Answer: D
Difficulty: Easy
Goal: 8

Fill-in-the-Blank

57. The F distribution is a ______________ distribution.

Answer: continuous
Difficulty: Medium
Goal: 1

58. What is the shape of the F distribution? ______________________

Answer: positively skewed
Difficulty: Medium
Goal: 1

59. What are the minimum and maximum of values of an F distribution? _______ and _______
Answer: zero and positive infinity
Difficulty: Medium
Goal: 1

60. What kind of values can the F distribution NOT have? ______________
Answer: negative values
Difficulty: Medium
Goal: 1

61. When comparing two population variances we use the ___________ distribution.
Answer: F
Difficulty: Medium
Goal: 1

62. What test statistic is used in ANOVA? ________________

Answer: F statistic
Difficulty: Easy
Goal: 1

63. The calculated F value must be equal to or greater than _________ .

Answer: zero (0)
Difficulty: Medium
Goal: 1

64. What test statistic is used to compare two variances? ________________

Answer: F statistic
Difficulty: Easy
Goal: 2

65. The F-distribution is useful when testing a requirement of two-sample tests of hypothesis. What is
the assumption? ________________
Answer: The population variances are equal
Difficulty: Medium
Goal: 2

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66. What is the statistical technique used to test the equality of three or more population means called?
______________________
Answer: analysis of variance (ANOVA)
Difficulty: Easy
Goal: 3

67. ANOVA requires that the populations should be _______, _______, and ______.
Answer: normal or normally distributed; independent, equal standard deviations or variances
Difficulty: Medium
Goal: 3

68. What statistical technique is used to test the equality of three or more population means?
____________________
Answer: analysis of variance (ANOVA)
Difficulty: Easy
Goal: 3

69. What is the least number of sources of variation in ANOVA? _________

Answer: two
Difficulty: Medium
Goal: 3

70. In an ANOVA without a block source of variation, what are the degrees of freedom associated with
the error sum of squares? ___________
Answer: n - k
Difficulty: Medium
Goal: 4

71. ANOVA, how many degrees of freedom are associated with the numerator of the F ratio? _______
Answer: k - 1 or b - 1 or (k - 1 )( b - 1 ) Difficulty: Medium
Goal: 4

72. What equals the sum of squares divided by its corresponding degrees of freedom?
_________________
Answer: mean square
Difficulty: Hard
Goal: 4

73. In ANOVA, what is the numerator of the F ratio called? ______________

Answer: treatment mean square, block mean square, or interaction mean square
Goal: 4

Difficulty: Medium

74. Assuming that the larger of two variances is in the numerator of an F statistic, in which tail of the F
distribution is the rejection region for analysis of variance? ________
Answer: upper
Difficulty: Medium
Goal: 4

75. In ANOVA, when we do not reject the null hypothesis, what inference do we make about the
population means? ________________
Answer: they are equal
Difficulty: Medium
Goal: 5

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76. What is the null hypothesis for an ANOVA? ____________________

Answer: H o : 1 2 3 Difficulty: Medium
Goal: 5

77. When H0 is rejected in ANOVA, _______ _______ are constructed to identify means that differ.
Answer: confidence intervals
Difficulty: Medium
Goal: 6

78. When a second treatment is included in the ANOVA analysis without interaction, that treatment is
called a __________________.
Answer: blocking variable
Difficulty: Medium
Goal: 7

79. How many sources of variation are summarized in a two-way ANOVA table? _________
Answer: three
Difficulty: Medium
Goal: 7

80. In a two-way ANOVA table, what are the error degrees of freedom? _________
Answer: (k - 1)(b - 1)
Difficulty: Medium
Goal: 7

81. In a two-way ANOVA with interaction, table, what are the error degrees of freedom? _________
Answer: (n kb)
Difficulty: Hard
Goal: 8
82. In a two-way ANOVA with interaction, what are the interaction degrees of freedom? _________
Answer: (k - 1)(b - 1)
Difficulty: Hard
Goal: 8

83. In a one-way ANOVA, what are the two sources of variation? _________
Answer: treatment and error variation
Difficulty: Hard
Goal: 5
84. In a two-way ANOVA without interaction, what are the three sources of variation?
Answer: Treatment, Block and error variation
Difficulty: Hard
Goal: 7
85. In a two-way ANOVA with interaction, what are the four sources of variation? _________
Answer: Factor A, factor B, interaction of factors A and B, error
Difficulty: Hard
Goal: 8

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Multiple Choice

Use the following to answer questions 86-96:

A manufacturer of automobile transmissions uses three different processes. The management ordered a
study of the production costs to see if there is a difference among the three processes. A summary of the
findings is shown below.

P r o c e s s T o ta ls ( $ 1 0 0 s )
S a m p le S iz e
S u m o f S q u a re s

P ro c ess 1
137
10
1893

P ro c e ss 2
108
10
1188

P ro c e ss 3
107
10
1175

T o ta l
352
30
4256

86. What is the sum of squares for the treatment?

A) 67.80
B) 58.07
C) 149.34
D) 23.47
Answer: B
Difficulty: Hard
Goal: 5
87. What is the sum of squares of the error?
A) 67.80
B) 58.07
C) 149.34
D) 23.47
Answer: A
Difficulty: Hard
Goal: 5
88. What is the critical value of F at the 5% level of significance?
A) 19.45
B) 3.00
C) 3.35
D) 3.39
Answer: C
Difficulty: Hard
Goal: 5
89. What is the critical value of F at the 1% level of significance?
A) 99.46
B) 5.49
C) 5.39
D) 4.61
Answer: B
Difficulty: Hard
Goal: 5

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90. What are the degrees of freedom for the treatment sum of squares?
A) 2
B) 3
C) 10
D) 27
Answer: A
Difficulty: Medium
Goal: 5
91. What are the degrees of freedom for the error sum of squares?
A) 3
B) 10
C) 27
D) 30
Answer: C
Difficulty: Medium
Goal: 5
92. What are the total degrees of freedom?
A) 27
B) 28
C) 29
D) 30
Answer: C
Difficulty: Medium
Goal: 5
93. What is the mean square for treatments?
A) 2.511
B) 2.151
C) 33.9
D) 29.035
Answer: D
Difficulty: Hard
Goal: 5
94. What is the mean square for error?
A) 2.511
B) 2.151
C) 33.9
D) 29.035
Answer: A
Difficulty: Hard
Goal: 5
95. What is the calculated F?
A) 0.086
B) 1.168
C) 11.56
D) 13.50
Answer: C
Difficulty: Hard

Goal: 5

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96. What is the decision?

A) Reject H0 -- there is a difference in treatment means
B) Fail to reject H0 -- there is a difference in treatment means
C) Reject H0 -- there is a difference in errors
D) Fail to reject H0 -- there is a difference in errors
Answer: A
Difficulty: Hard
Goal: 5
Fill-in-the-Blank

Use the following to answer questions 97-106:

In a study of low tar cigarettes, five cigarettes from each of three brands were tested to see if the mean
amount of tar per cigarette differs among the brands.

97. What are the degrees of freedom for the numerator? ______
Answer: 2
Difficulty: Medium
Goal: 4
98. What are the degrees of freedom for the denominator? ______
Answer: 12
Difficulty: Medium
Goal: 4
99. If the sum of squares for the brands is 0.07, what is the mean square for brands? ______
Answer: 0.035
Difficulty: Hard
Goal: 4
100. If the sum of squares for the error is 0.09, what is the mean square for the error? ______
Answer: 0.0075
Difficulty: Hard
Goal: 4
101. What is the F critical value for = 0.05? ______
Answer: 3.89
Difficulty: Medium
Goal: 5
102. What is the calculated value of F if the brand sum of squares is 0.07 and the error sum of squares is
0.09? ______
Answer: 4.66
Difficulty: Hard
Goal: 4
103. If F calculated is 4.75 what is the decision if = 0.05? ___________
Answer: reject H0
Difficulty: Hard
Goal: 5
104. If the calculated F is 4.74, what would the decision be if = 0.01? _________________
Answer: Do not reject H0
Difficulty: Medium
Goal: 5

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105. If the sum of squares for the brands is 0.05 and the sum of squares for the error is 0.09, what is the
decision rule if = 0.05? ________________________
Answer: Do not reject H0 since calculated F = 3.33 and F(0.05) = 3.89
Difficulty: Hard
Goal:
5
106. If the sum of squares for the brands is 0.07 and the sum of squares for the error is 0.11, what is the
decision rule at = 0.05? __________________________
Answer: Do not reject H0 since calculated F = 3.88 and F(0.05) = 3.89
Difficulty: Hard
Goal:
5
Multiple Choice

Use the following to answer questions 107-111:

Given the following Analysis of Variance table for three treatments each with six observations.

S
T
E
T

o u rc e
re a tm e n ts
rro r
o ta l

S u m o f S q u a re s
1116
1068
2184

df

M e a n S q u a re

107. What are the degrees of freedom for the numerator and denominator?
A) 3 and 18
B) 2 and 17
C) 3 and 15
D) 2 and 15
Answer: D
Difficulty: Medium
Goal: 4
108. What is the critical value of F at the 5% level of significance?
A) 3.29
B) 3.68
C) 3.59
D) 3.20
Answer: C
Difficulty: Medium
Goal: 4
109. What is the mean square for treatments?
A) 71.2
B) 71.4
C) 558
D) 534
Answer: C
Difficulty: Hard
Goal: 4

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110. What is the computed value of F?

A) 7.48
B) 7.84
C) 8.84
D) 8.48
Answer: B
Difficulty: Hard
Goal: 4
111. What is the decision?
A) Reject H0 -- there is a difference in treatment means
B) Fail to reject H0 -- there is a difference in treatment means
C) Reject H0 -- there is a difference in errors
D) Fail to reject H0 -- there is a difference in errors
Answer: A
Difficulty: Hard
Goal: 5
Fill-in-the-Blank

Use the following to answer questions 112-123:

A bottle cap manufacture with four machines and six operators wants to see if variation in production is
due to the machines and/or the operators. Each operator is assigned to each machine with the following
Analysis of Variance table.

S o u rc e
M a c h in e s
O p e ra to rs
E rro r
T o ta l

S u m o f S q u a re s
114
215
54
383

df

M e a n S q u a re

112. What are the degrees of freedom for the machines? ______
Answer: 3
Difficulty: Medium
Goal: 7
113. What are the degrees of freedom for the operators? _____
Answer: 5
Difficulty: Medium
Goal: 7
114. What are the degrees of freedom for the errors? _____
Answer: 15
Difficulty: Medium
Goal: 7
115. What is the critical value of F for the machine treatment effect at the 1% level of significance? ____
Answer: 5.42
Difficulty: Medium
Goal: 7

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116. What is the critical value of F for the operator block effect at the 1% level of significance? ____
Answer: 4.56
Difficulty: Medium
Goal: 7
117. What is the mean square for machines? _____
Answer: 111.39
Difficulty: Hard
Goal: 7
118. What is the mean square for operators? _____
Answer: 47.44
Difficulty: Hard
Goal: 7
119. What is the mean square for errors? _____
Answer: 24.77
Difficulty: Hard
Goal: 7
120. What is the computed value of F for the machines? _____
Answer: 4.50
Difficulty: Hard
Goal: 7
121. What is the computed value of F for the operators? _____
Answer: 1.92
Difficulty: Hard
Goal: 7
Essay
122. Using a 1% significance level, what is the decision for the machines?
__________________________
Answer: Do not reject H0; there is no difference in production based on machines
Difficulty: Hard
Goal: 7
123. Using a 1% level of significance, what is the decision for the operators?
__________________________
Answer: Do not reject H0; there is no difference in production based on the operators
Hard
Goal: 7

Difficulty:

Multiple Choice

Use the following to answer questions 124-132:

Two accounting professors decided to compare the variation of their grading procedures. To accomplish
this they each graded the same 10 exams with the following results:

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P ro fe sso r 1
P ro fe sso r 2

M e a n G ra d e
7 9 .3
8 2 .1

S ta n d a rd D e v ia tio n
2 2 .4
1 2 .0

124. What is H0?

A) 21 2 2
B) 21 2 2
C) 1 2
D) 1 2
Answer: A

Difficulty: Medium

Goal: 2

Difficulty: Medium

Goal: 2

125. What is H1?

A) 21 2 2
B) 21 2 2
C) 1 2
D) 1 2
Answer: B

126. What are the degrees of freedom for the numerator of the F ratio?
A) 8
B) 9
C) 10
D) 18
E) 20
Answer: B
Difficulty: Medium
Goal: 2
127. What are the degrees of freedom for the denominator of the F ratio?
A) 20
B) 18
C) 10
D) 9
E) 8
Answer: D
Difficulty: Medium
Goal: 2
128. What is the critical value of F at the 0.01 level of significance?
A) 5.85
B) 5.35
C) 6.51
D) 4.03
Answer: B
Difficulty: Medium
Goal: 2

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129. What is the critical value of F at the 0.05 level of significance?

A) 5.85
B) 5.35
C) 3.18
D) 4.03
Answer: C
Difficulty: Medium
Goal: 2
130. The calculated F ratio is
A) 3.484
B) 1.867
C) 3.18
D) 5.35
Answer: A
Difficulty: Hard

Goal: 2

131. At the 1% level of significance, what is the decision?

A) Reject the null hypothesis and conclude the variance is different.
B) Fail to reject the null hypothesis and conclude the variance is different.
C) Reject the null hypothesis and conclude the variance is the same.
D) Fail to reject the null hypothesis and conclude the variance is the same.
Answer: D
Difficulty: Hard
Goal: 2
132. At the 5% level of significance, what is the decision?
A) Reject the null hypothesis and conclude the variance is different.
B) Fail to reject the null hypothesis and conclude no significant difference in the variance.
C) Reject the null hypothesis and conclude the variance is the same.
D) Fail to reject the null hypothesis and conclude the variance is the same.
Answer: A
Difficulty: Hard
Goal: 2
Use the following to answer questions 133-136:
A random sample of 30 executives from companies with assets over $1 million was selected and asked for
their annual income and level of education. The ANOVA comparing the average income among three
levels of education rejected the null hypothesis. The Mean Square Error (MSE) was 243.7. The
following table summarized the results:

N u m b e r s a m p le d
M e a n s a la r y ( 1 ,0 0 0 s )

H ig h S c h o o l
o r L ess
7
49

U n d e rg ra d u a te
D e g re e
11
7 6 .3

M a s te r s D e g r e e
o r M o re
12
7 8 .3

133. When comparing the mean salaries to test for differences between treatment means, the t statistic is
based on:
A) The treatment degrees of freedom.
B) The total degrees of freedom.

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C) The error degrees of freedom

D) The ratio of treatment and error degrees of freedom
Answer: C
Difficulty: Medium
Goal: 6

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134. When comparing the mean annual incomes for executives with Undergraduate and Master's Degree
or more, the following 95% confidence interval can be constructed:
A) 2.0 2.052*6.51
B) 2.0 3.182*6.51
C) 2.0 2.052*42.46
D) None of the above
Answer: A
Difficulty: Hard
Goal: 6
135. Based on the comparison between the mean annual incomes for executives with Undergraduate and
Master's Degree or more,
A) A confidence interval shows that the mean annual incomes are not significantly different.
B) The ANOVA results show that the mean annual incomes are significantly different.
C) A confidence interval shows that the mean annual incomes are significantly different.
D) The ANOVA results show that the mean annual incomes are not significantly different.
Answer: A
Difficulty: Medium
Goal: 6
136. When comparing the mean annual incomes for executives with a High School education or less and
Undergraduate Degree, the 95% confidence interval shows an interval of 11.7 to 42.7 for the difference.
This result indicates that
A) There is no significant difference between the two incomes.
B) The interval contains a difference of zero.
C) Executives with and Undergraduate Degree earn significantly more than executives with a High
School education or less.
D) Executives with and Undergraduate Degree earn significantly less than executives with a High School
education or less.
Answer: C
Difficulty: Hard
Goal: 6
Fill-in-the-Blank

Use the following to answer questions 137-153:

A bottle cap manufacture with four machines and three operators wants to see if variation in hourly
production is due to the machines and/or the operators or an interaction effect of machine and operator.
Each operator is assigned to each machine and the production of caps from 3 randomly selected hours is
recorded. The analysis shows the following Analysis of Variance table.

137. What are the degrees of freedom for the machines? ______
Answer: 3
Difficulty: Medium
Goal: 8

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138. What are the degrees of freedom for the operators? _____
Answer: 2
Difficulty: Medium
Goal: 8
139. What are the degrees of freedom for the interaction? _____
Answer: 6
Difficulty: Medium
Goal: 8
140. What are the degrees of freedom for the error? _____
Answer: 24
Difficulty: Medium
Goal: 8
141. What is the critical value of F for the machine effect at the 1% level of significance? ____
Answer: 4.72
Difficulty: Medium
Goal: 8
142. What is the critical value of F for the operator effect at the 1% level of significance? ____
Answer: 5.61
Difficulty: Medium
Goal: 8
143. What is the critical value of F for the interaction effect at the 1% level of significance? ____
Answer: 3.67
Difficulty: Medium
Goal: 8
144. What is the mean square for machines? _____
Answer: 38
Difficulty: Hard
Goal: 8
145. What is the mean square for operators? _____
Answer: 57.5
Difficulty: Hard
Goal: 8
146. What is the mean square for interaction? _____
Answer: 16.67
Difficulty: Hard
Goal: 8
147. What is the mean square for errors? _____
Answer: 2.25
Difficulty: Hard
Goal: 8
148. What is the computed value of F for the machines? _____
Answer: 16.89
Difficulty: Hard
Goal: 8
149. What is the computed value of F for the operators? _____
Answer: 25.56
Difficulty: Hard
Goal: 8

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150. What is the computed value of F for the interaction? _____

Answer: 7.41
Difficulty: Hard
Goal: 8
151. Using a 1% significance level, what is the decision for the machines?
__________________________
Answer: Reject H0; there is a difference in production based on machines
Difficulty: Hard
Goal: 8

Essay
152. Using a 1% level of significance, what is the decision for the operators?
__________________________
Answer: Reject H0; there is a difference in production based on the operators
Difficulty: Hard
Goal: 8
153. Using a 1% level of significance, what is the decision for the interaction?
__________________________
Answer: Reject H0; there is an interaction effect of machine and operator
Difficulty: Hard
Goal: 8

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