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A marketing manager wants to determine if the advertising spending per month of his competitors is equal or not. Data over the last six months reveals the following figures (in thousands of dollars).
A
B
C
11
9
12
17
23
27
28
35
45
43
54
39
38
32
41
a. Calculate the SSE for these observations;
1. 196
2. 783.50
3. 2942
4. 2934
5. None of the above
b. Compute the SST for these observations (answers below are rounded
1. 4
2. 8
3. 2934
4. 16
c. Calculate the F-ratio for the ANOVA based on these observations;
1. 0.05
2. 3.68
3. 0.021
4. 0.010
d. Find the F-value from the table in the back of the book to test the hypothesis that there is no difference in the average spending among these companies at α= 0.05
1. 3.68
2. 19.43
3. 0.02
4. 3.29
e. What is your null hypothesis? What is your alternative hypothesis? What your decision about the null hypothesis?
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