car rental rates, 27 people were randomly assigned rental (30 points total) In o

Question

car rental rates, 27 people were randomly assigned rental (30 points total) In order to compare to go to one of three airports (New York, Chicago, or Miami) and use one of three car companies (Hertz, Avis, National) there. Three people went to each combination of a city and a rental company and reported daily rental rate of a mid-sized car. 1. (25 points) Perform only the necessary tests at 5% significant level: treatments. a. interaction and/or main effects. Give the hypotheses, test statistics, critical values. and decisions, Do not perform any tests that are not necessary. The ANOVA table from Minitab is given below: Analysis of Variance for Rate Source Airport Company MS 29.36 DF 0.65 2 2 1011.77 505.8911.12 4 2514.31 628.58 13.81 58.71 Interaction Error Total 18 819.13 45.51 26 4403.92

Explanation / Answer

Solution- Hypotheses would be-

H0: Daily rents for each of the comoany is equal.

Ha: Daily rents for each of the company need not be equal

We woul conduct F test the above hypothesis and test Statistic is calculated as-

= mean square factor / mean square error = 628.58 / 45.51 = 13.81

P-value will be P[ F( 4, 18) > 13.81 ] = .0000255

As p-value is less than .05 then we can say that null hypothesis is rejected at 5% level of significance and we can conclude that mean rents for three companies need not to be equal.

Answer

TY!

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