Reference no: EM1317557

Which table above represents an ANOVA problem? Which one doesn't? Explain Why.

Take a look at two tables I have created below. See if you can spot which one represents a business problem appropriate for ANOVA.

 

Table 1:

	Traffic Accidents	Workman's Comp	Criminal Assault
Average Anticipated	$1,200,000	$800,000	$185,000
Lawyers' fees	N = 25 people	N = 25 people	N = 25 people
	surveyed	surveyed	surveyed

 

In this table, my research is about the average amount of money people expect to spend on attomeys when they are injured. Is there a difference, depending on type of injury? Do people expect to spend more when the injury happened in a car, on job, or via attack from another person? If I run an insurance agency, this information about people's beliefs could tell me what type of insurance people would be most willing to buy.

 

Table 2:

	number of people who said,	number of peoplewho said, "No, 1	TOTAL
	"Yes, I hired anattomey."	did not hire anattomey."
Traffic Accidents	40	60	100
Workman's Comp	77	23	100
Criminal Assault	89	11	100
TOTAL	206	94	300

 

In this table, my research question asks whether there is an association between the sort of accident and the likelihood of hiring an attomey. How many people select to hire an attomey when they get injured? Are people more likely to hire an attomey for one kind of injury than another? From the results, I can expect whether people are most likely to seek legal representation when they are involved in a traffic accident, a work-related accident, or are assaulted by another person. If I want to make a TV commercial for a personal injury law firm, I will know which type of injury victim to target in my message.

Now, which table above represents an ANOVA problem? Which one doesn't? describe Why.