A high-tech company in Toronto is going to launch a new product and is starting an aggressive advertising campaign. The company would like to find out whether the interest of potential buyers in the product would depend on their incomes. The research group randomly selected 30 potential buyers, recorded their incomes, and put them into three groups which depending on the reaction to advertising are called Will Buy (would probably buy the product), Will Not Buy (are not ready to buy the product and would rather stick to the old product for the time being), and Undecided (have not decided yet). The research group wants to test at 1% significance level whether people with different incomes react differently to the advertising. A One-Way ANOVA test was conducted at α = 0.01; the printout is provided below.
Anova: Single Factor
SUMMARY
Groups Count Sum Average Variance
will buy 15 421 28.0667 42.781
will not buy 13 649 49.9231 176.41
undecided 12 495 41.25 256.205
ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 3404.269 2 1702.13 11.3802 0.00014 5.22902
Within Groups 5534.106 37 149.57
Total 8938.375 39
What conclusion can you make?
People with different incomes react differently to the advertising campaign as the average incomes of those who would buy, who would not buy, and those who have not decided yet are significantly unequal.
The reaction to the advertising does not depend on the level of personal income as the average incomes of those who would buy, who would not buy, and those who have not decided yet are approximately equal.
The ANOVA test is unable to give a positive or a negative answer to the question whether people with different incomes react differently to the advertising.
All of the above
None of the above.