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Question
A study has been conducted to determine whether the mean spending for recreational activities during the month of August differs for residents of three cities. Random samples of 30 people were selected from each city and their spending on recreation was recorded during August. The following output was generated using Excel:ANOVA: Single Factor
SUMMARY
| Groups | Count | Sum | Average | Variance |
| City 1 | 30 | 7897.179 | 236.2393 | 3334.11 |
| City 2 | 30 | 10322.1 | 344.0701 | 2201.818 |
| City 3 | 30 | 6045.102 | 201.5034 | 2215.919 |
ANOVA
| Source of Variation | SS | df | MS | F | P-value | F crit |
| Between Groups | 306701.8 | 2 | 153350.9 | 59.3475 | 5.54E-17 | 3.101292 |
| Within Groups | 224803.5 | 87 | 2583.949 | |||
| Total | 531505.4 | 89 |
The Excel output shows that the null hypothesis of equal means should be rejected. Given this, perform the appropriate method for determining which population means are different. Conduct the test using an alpha = 0.05 level.
Answer
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A) Because t = -2.69 is less than -2.3456, do not reject H0
Conclude that 2012 average out-of-pocket prescription drug expenses are not lower than the 2002 average.
B) Because t = -2.69 is less than -2.3456, reject H0
Conclude that 2012 average out-of-pocket prescription drug expenses are lower than the 2002 average.
C) Because t = -1.69 is less than -0.8712, reject H0
Conclude that 2012 average out-of-pocket prescription drug expenses are lower than the 2002 average.
D) Because t = -1.69 is less than -0.8712, do not reject H0
Conclude that 2012 average out-of-pocket prescription drug expenses are not lower than the 2002 average.
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A) p-value = 0.0872 > 0.025; therefore do not reject H0
B) p-value = 0.0422 > 0.005; therefore do not reject H0
C) p-value = 0.0314 < 0.105; therefore reject H0
D) p-value = 0.0121< 0. 0805; therefore reject H0
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Assume that a standard deck of 52 playing cards is randomly shuffled and the first 2 cards are dealt to you. What is the probability that you have a blackjack? A blackjack is where one card is an ace and the other card is worth 10 points. The 10-point cards are kings, queens, jacks and 10's.