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A small builder of speculative homes builds three basic house designs and employs two foremen. The builder has used each foreman to build two houses of each design and has obtained the profits given in Table 11.17 (the profits are given in thousands of dollars). Figure 11.16 presents the MINITAB output of a two-way ANOVA of the house profitability data.
FIGURE 11.16
MINITAB Output of a Two-Way ANOVA of the House Profitability Data
TABLE 11.17
Results of the House Profitability Study HouseProf
a. Interpret the MINITAB interaction plot in Figure 11.16. Then test for interaction with α = .05. Can we (separately) test for the significance of house design and foreman effects? Explain why or why not.
b. Which house design/foreman combination gets the highest profit? When we analyze the six house design/foreman combinations using one-way ANOVA, we obtain MSE = .390. Compute a 95 percent (individual) confidence interval for mean profit when the best house design/foreman combination is employed. |
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