Question

A senior accounting major at Midsouth State University has job offers from four CPA firms. To explore the offers further, she asked a sample of recent trainees how many months each worked for the firm before receiving a raise in salary. The sample information is submitted to Minitab with the following results: Analysis of Variance Source Factor df Ss MS F 3 28.17 9.39 5.37 0.133 15 26.26 1.75 18 54.43 Total What is the decision rule? (Round your answer to 2 decimal places.) eject H0 if F> At the 0.01 level of significance, is there a difference in the mean number of months before a raise was granted among the four CPA firms? Do not reject O Reject

Answer 1

(a) Critical value of F can be calculated:-

Degree of freedom 1 is Degree of freedom of factor(can be seen in numerator in table) =3

Degree of freedom 2 is Degree of freedom of error(can be seen in denominator in table) =15

F(0.01,3,15)= 5.42

Reject H0 if F>5.42

(b)

Since 5.37<5.42 So do not reject H0

So no difference between the men number of months