A startup cell phone applications company is interested in determining whether household incomes are different for subscribers to different service providers. A random sample of subscribers to each of the service providers was taken, and the annual household income for each subscriber was recorded. The partially completed ANOVA table for the analysis is below. Complete parts a and b below.
ANOVA
Source of Variation SS df MS F
Between groups 2,854,827,709 2 1,427,413,855 ?
Within groups
Total 9,445,598,140
a. Complete the ANOVA table by filling in the missing sums of squares, the degrees of freedom for each source, the mean square, and the calculated F test statistic.
b. Based on the sample results, can the startup firm conclude that there is a difference in household incomes for subscribers to the service providers? You may assume normal distributions and equal variances. Conduct your test at the level of significance. Be sure to state a critical F statistic, a decision rule, and a conclusion.
r = 0.05
Identify the hypotheses for the test. Choose the correct answer below.
A. H0: μ1 ≠ μ2 ≠ μ3
HA: At least two of the population means are equal
B. H0: μ1 = μ2 = μ3
HA: At least two of the population means are different
C. H0: μ1 = μ2 = μ3
HA: All of the population means are different
D. H0: μ1 ≠ μ2 ≠ μ3
HA: All of the population means are equal
State the decision rule at the level of significance. Select the correct choice below and fill in any answer boxes in your choice.
r = 0.05
A. If F > critical value, reject the null hypothesis. Otherwise, do not reject.
B. If F < critical value, reject the null hypothesis. Otherwise, do not reject.
C. If F > or F < critical value, reject the null hypothesis. Otherwise, do not reject.
Compute the F test statistic.
F = ?
Reach a decision.
(1) Reject the null hypothesis. There is (2) evidence that there is a difference in household incomes for subscribers to the three service providers.
ANOVA
Source of Variation SS df MS F
Between groups 2,854,827,709 2 1,427,413,855 ?
Within groups
Total 9,445,598,140