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A start-up cell phone applications company is interested in determining whether household incomes are different for subscribers to three different service providers. A random sample of 25 subscribers to each of the three service providers was taken, and the annual household income for each subscriber was recorded. The partially completed ANOVA table for the analysis is shown here:
a. Complete the ANOVA table by filling in the missing sums of squares, the degrees of freedom for each source, the mean square, and the calculated F -test statistic.
b. Based on the sample results, can the start-up firm conclude that there is a difference in household incomes for subscribers to the three service providers? You may assume normal distributions and equal variances. Conduct your test at the α = 0.10 level of significance. Be sure to state a critical F -statistic, a decision rule, and a conclusion. |
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