You can use excel to find this answers The results of Accounting Principals\' la

Question

You can use excel to find this answers

The results of Accounting Principals' latest Workonomix survey indicate the average American worker spends $1092 on coffee annually (The Consumerist, January 20, 2012). To determine if there are any differences in coffee expenditures by age group, samples of 10 consumers were selected for three age groups (18-34, 35-44, and 45 and Older). The dollar amount each consumer in the sample spent last year on coffee is provided below. 18-34 35-44 45 and Older 1355 969 1135 115 434 956 1456 1792 400 2045 1500 1374 1621 1277 1244 994 1056 825 1937 1922 763 1200 1350 1192 1567 1586 1305 1390 1415 1510 a. Compute the mean, variance, and standard deviation for the each of these three samples. b. What observations can be made based on these data?

Explanation / Answer

Here we have to determine that there are any differences in coffee expenditure by age group

That is to test that

Ho: m1=m2=m3

or m1-m2=0 ,m2-m3=0, m1-m3=0

vs

H1: atleast one of the pair differ significantly.

By using Excel we find the output using one way ANOVA

output is as follows:

here pvalue= 0.280543 > alpha=0.05

hence we do not reject Ho.

That is there is no any differences between coffee expenditures by age group.

a)

   18-34 35-44 45 &elder

Average 1368 1330.1 1070.4

variance 292467.3 186332.3 111866

standard 540.8025 431.6623 334.4638

deviation

b) From this data we conclude that there is no any differences between coeffee expenditure by age group.

Anova: Single Factor SUMMARY Groups Count Sum Average Variance Column 1 10 13680 1368 292467.3 Column 2 10 13301 1330.1 186332.3 Column 3 10 10704 1070.4 111866 ANOVA Source of Variation SS df MS F P-value F crit Between Groups 524820.9    2 262410.4 1.332787 0.280543 3.354131 Within Groups 5315991 27 196888.6 Total 5840812 29

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