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# Q1 QUESTION 1. In a study of length of hospital stay (in number of days) of persons in four income groups, the
parameters are as follows: ,u] : 5.1, [L2 : 6.3, m, = 7.9, #4 = 9.5, cr = 2.8. Assume that
ANOVA model ~(16.2) is appropriate. a. Draw a representation of this model in the format of Figure 16.2. b. SuppOse 100 persons from each income group are randomly selected for the study. Find
E {MST R} and E {MSE}. Is E {MSTR} substantially larger than E {MSE} here? What is the
implication of this? c. If M = 5.6 and #3 = 9.0, everything else remaining the same, what would E {MST R} be?
Why is E{M.STR} substantially larger here than in part (b) even though the range of the
factor level means is the same? FIGURE 16.2 Type 2 Type1 Type 4 Type 3 Analysis of Variance Model Representation -——Incentive Pay Example. A 9
51 58 70 78 84 90 Y
Y2; M2 M1 3’1: M4 M3
82!- = - 7 £1]— = 8 Employee Productivity
The ANOVA model can now be stated as follows: Yr; 2 n. + 8a (16.2)

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