A market researcher is studying the spending habits of people across age groups.

Question

A market researcher is studying the spending habits of people across age groups. The amount of money spent by each individual is classified by spending category (Dining out, Shopping, or Electronics) and generation (Gen-X, Gen-Y, Gen-Z, or Baby Boomers).

At 90% confidence, determine whether there is a significant interaction between generation and spending habits and interpret any main effects (if appropriate).

HO:

HA:

a:

Cristical Value(s):

Test statsict(s):

p:

Conclusion:

Monthly Spending ($) (Factor A) Dining out Shopping Electronics Generation (Factor B) Baby Boomers 50 675 25 75 500 50 0 750 80 Gen-X 150 400 100 200 440 75 225 380 95 Gen-Y 100 200 300 300 225 400 400 245 450 Gen-Z 500 100 200 550 180 300 600 190 260

Explanation / Answer

HO: there will be no interaction between factor A and B

HA: not H0

a:

Cristical Value(s): F6,24,0.95=2.50819

Test statsict(s): T=34.20

p: 0.000

Conclusion: there is strong relationship between factor A and B. Hence we reject H0 at 95% confidence level.

the ANOVA table is below...............................

Two-way ANOVA: y versus factor A, factor B

Source DF SS MS F P
factor A 2 159860 79930 16.43 0.000
factor B 3 46869 15623 3.21 0.041
Interaction 6 998335 166389 34.20 0.000
Error 24 116767 4865
Total 35 1321831

S = 69.75 R-Sq = 91.17% R-Sq(adj) = 87.12%

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