A market researcher is studying the spending habits of people across age groups.
ID: 3334329 • Letter: A
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). The data and an incomplete ANOVA table are shown below.
Monthly Spending ($) (Factor A)
Dining out
Shopping
Electronics
Generation (Factor B)
Baby Boomers
50
675
25
75
500
50
0
750
80
Gen-X
150
400
100
200
440
75
225
380
95
Gen-Y
100
200
300
300
225
400
400
245
450
Gen-Z
500
100
200
550
180
300
600
190
260
Source of Variation
SS
df
MS
F
Rows (Factor B)
46,869
3
15,623
Columns (Factor A)
159,860
2
79,930
Interaction
Error
4,865
Total
1,321,831
35
Which of the following are the competing hypotheses for the hypothesis test about the interaction?
H0: There is interaction between spending category and generation,
HA: There is no interaction between spending category and generation.
H0: 1 = 2 = 3,
HA: Not all population means are equal.
H0: There is no interaction between spending category and generation,
HA: There is interaction between spending category and generation.
H0: 1 = 2 = 3 = 4,
HA: Not all population means are equal.
Monthly Spending ($) (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
The ideal hypothesis for interaction is
H0: There is no interaction between spending category and generation,
HA: There is interaction between spending category and generation.
That is in null hypothesis we assume that there is no existing interaction between the spending and generation and we try to show that interaction is present or not, so in alternative hypothesis we fix no interaction
H0: There is no interaction between spending category and generation,
HA: There is interaction between spending category and generation.
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