Question

1) Guitars R. US has three stores located in three different areas. Random samples of the sales of the three stores (in $1000) are shown below. The null hypothesis is to be tested at 95% confidence. Determine the p-value and use it for the test

Store 1	Store 2	Store 3
80	85	79
75	86	85
76	81	88
89	80
80

Select one:

a. p-value = 0.85 > 5%. Failed to reject the null hypothesis. There is no evidence of significant difference.

b. p-value = 0.458 >5%. Failed to reject the null hypothesis. There is no evidence of significant difference.

c. p-value = 0.458 <5%. Reject the null hypothesis. There is evidence of significant difference.

d. p-value = 0.085 > 5%. Failed to reject the null hypothesis. There is evidence of significant difference.

2. Testing the equality of three or more population proportions

Select one:

a. is not possible, since proportions deal with only two possible outcomes

b. use a t-test

c. is the same as test of goodness of means

d. use chi-square test

3. A market analyst is developing a regression model to predict monthly household expenditures on groceries as a function of family size, household income, and household neighborhood (urban, suburban, and rural). What is the "income" variable in this model?

Select one:

a. An independent variable

b. A response variable

c. A dependent variable

d. A qualitative variable

4. What is the name of the procedure that uses sample data to find the best-estimated regression equation that fits the data?

Select one:

a. Least Squares Method

b. Residual Method

c. Analytical Method

d. None of the above is the correct answer

Answer 1

1) Applying ANOVA:

Source of Variation	SS	df	MS	F	P-value
Between Groups	36	2	18	0.85	0.4580
Within Groups	190	9	21.11
Total	226	11

b. p-value = 0.458 >5%. Failed to reject the null hypothesis. There is no evidence of significant difference.

2)

d. use chi-square test

3)

a. An independent variable

4)

a. Least Squares Method