How productive are U.S. workers? One way to answer this question is to study annual profits per employee. A random sample of companies in computers (I), aerospace (II), heavy equipment (III), and broadcasting (IV) gave the following data regarding annual profits per employee (units in thousands of dollars). I II III IV 27.9 13.5 22.2 17.9 23.2 9.6 20.5 16.4 14.7 11.1 7.7 14.5 8.3 8.9 12.7 15.9 11.8 6.5 7.7 10.6 19.1 9.5 What are the degrees of freedom? (numerator) (denominator) (c) Find the P-value of the sample test statistic. P-value > 0.100 0.050 < P-value < 0.100 0.025 < P-value < 0.050 0.010 < P-value < 0.025 0.001 < P-value < 0.010 P-value < 0.001 (d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Since the P-value is greater than the level of significance at α = 0.05, we do not reject H0. Since the P-value is less than or equal to the level of significance at α = 0.05, we reject H0. Since the P-value is greater than the level of significance at α = 0.05, we reject H0. Since the P-value is less than or equal to the level of significance at α = 0.05, we do not reject H0. (e) Interpret your conclusion in the context of the application. At the 5% level of significance there is insufficient evidence to conclude that the means are not all equal. At the 5% level of significance there is sufficient evidence to conclude that the means are all equal. At the 5% level of significance there is insufficient evidence to conclude that the means are all equal. At the 5% level of significance there is sufficient evidence to conclude that the means are not all equal. (f) Make a summary table for your ANOVA test. Source of Variation Sum of Squares Degrees of Freedom MS F Ratio P Value Test Decision Between groups ---Select--- p-value > 0.100 0.050 < p-value < 0.100 0.025 < p-value < 0.050 0.010 < p-value < 0.025 0.001 < p-value < 0.010 p-value < 0.001 ---Select--- Do not reject H0. Reject H0. Within groups Total
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
How productive are U.S. workers? One way to answer this question is to study annual profits per employee. A random sample of companies in computers (I), aerospace (II), heavy equipment (III), and broadcasting (IV) gave the following data regarding annual profits per employee (units in thousands of dollars).
I | II | III | IV |
27.9 | 13.5 | 22.2 | 17.9 |
23.2 | 9.6 | 20.5 | 16.4 |
14.7 | 11.1 | 7.7 | 14.5 |
8.3 | 8.9 | 12.7 | 15.9 |
11.8 | 6.5 | 7.7 | 10.6 |
19.1 | 9.5 |
What are the degrees of freedom?
(numerator)
(denominator)
(c) Find the P-value of the sample test statistic.
(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis?
(e) Interpret your conclusion in the context of the application.
(f) Make a summary table for your ANOVA test.
Source of Variation |
Sum of Squares |
Degrees of Freedom |
MS | F Ratio |
P Value | Test Decision |
Between groups |
---Select--- p-value > 0.100 0.050 < p-value < 0.100 0.025 < p-value < 0.050 0.010 < p-value < 0.025 0.001 < p-value < 0.010 p-value < 0.001 |
---Select--- Do not reject H0. Reject H0. | ||||
Within groups | ||||||
Total |
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