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HWK 16 - F = 22.16 P-value = 0.00 Conclusion Rejection Ho...

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Homework #16  Problem #10 Business Issue  Judgement of errors made by auditors Business Question Can we conclude that the auditors judgemets were better than actual results Data  Direct Indirect Combination 17.0 16.6 25.2 18.5 22.2 24.0 15.8 20.5 21.5 18.2 18.3 26.8 20.2 24.2 27.5 16.0 19.8 25.8 13.3 21.2 24.2 Analysis  Hypotheses Ho: Ho:  mu1 = mu2 = mu3 Ha:  Ha: at least 2 means differ Test Stat If Ho is true the sample means should be similar If Ha is true the sample means might be very different Sum of Squared Treatment differences  Mean Squared Treatment differences Mean Squared Error Differences F = MST/MSE If Ho is true, this ratio has the F distribution with df1=k-1 and df2=n-k Sig Level Alpha = .05 Reject Rule Reject Ho if F > FINV =  3.55 F >  3.555 Calculations

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Unformatted text preview: F = 22.16 P-value = 0.00 Conclusion Rejection Ho Business Answer According to the sample taken there is overwhelming evidence to conclude that the auditors judgements were better than the acutal Anova: Single Factor SUMMARY Groups Count Sum Average Variance Column 1 7 119 17 5.01 Column 2 7 142.8 20.4 6.26 Column 3 7 175 25 4.01 ANOVA SS df MS F P-value F crit 225.68 2 112.84 22.16 3.55 SST = Sum of Squares --" treatments " = [n j *(xbar j- xdoublebar)^2], j=1,2,3 MST = SST/(k-1) , where k=number of treatments SSE = Sum of Squares -- Errors for all three samples = Sum[(n j-1)*s j ^2], j=1,2,3 MSE = SSE/(n-k) where n = n1+n2+n3. (Here, n=20+20+20=60) 91.66 18 5.09 317.34 20...
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