assignment_12 - Georgia Southern University, College of...

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Georgia Southern University, College of Business Administration BUSA 3131 Business Statistics, Assignment 12, Fall 2011 Name: _______________ Goodness of Fit, Chi Square, and Analysis of Variance (ANOVA) Chapter 15 of the text introduces the process of comparing expected values of some variable to the actual values from measurement of that variable among samples. For example, suppose researchers are interested in knowing about changes over the past twelve months in airline fares between a dozen major U.S. cities. While it might seem that air fares would change by the same percentage among all airlines and among the various routes, the changes actually vary significantly. Why would a researcher be interested in such a study? Suppose you have a choice of flying from Savannah, Hilton Head, Atlanta, Charleston or Jacksonville when you travel to Southeast Florida. You might also have the choice of destination airport. In this case, perhaps Miami, West Palm Beach, or Ft. Lauderdale. If travelers could save 20% by adjusting their airline and/or routes, they might reduce travel costs. An aggressive travel agent might use such knowledge about competing fares to offer more competitive fares, attracting more customers. Similarly, a computer based internet travel reservation system like Travelocity or Expedia could attract more customers if it could make real time comparisons based on the ever changing rates offered by airlines using different routes. When such comparisons are made, data is first collected to provide the mean prices at a point in time. Then, the various rates offered by different airlines and on different routes can be compared to the mean air fare. Since some fares will be higher and others lower than the mean, the differences between the mean and the individual fares will include both positive and negative numbers. Squaring the variables avoids the problem if trying to average the differences from the mean. Summing the squares of the differences between each of the airline fares and
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This note was uploaded on 01/30/2012 for the course BUSA 3131 taught by Professor Watson during the Fall '11 term at Georgia Southern University .

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assignment_12 - Georgia Southern University, College of...

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