A student club wishes to determine whether there are differences in new textbook prices at on-campus bookstores,

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A student club wishes to determine whether there are differences in new textbook prices at on-campus bookstores, off-campus bookstores, and Internet bookstores. To control for differences in textbook prices that might exist across disciplines, suppose the students randomly selected 12 textbooks and recorded the price of each of the 12 books at each of the three retailers. You are given that normality and equalvariance assumptions have been met. The partially completed ANOVA table based on the study’s findings is shown here:

ANOVA Source of Variation SS df MS F Textbooks 16,624 Retailer 2.4 Error Total 17,477.6

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 for each possible hypothesis test.

b. Based on the study’s findings, was it correct to block for differences in textbooks? Conduct the appropriate test at the a = 0.10 level of significance.

c. Based on the study’s findings, can you conclude that there is a difference in the average price of textbooks across the three retail outlets? Conduct the appropriate hypothesis test at the a = 0.10 level of significance.

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Business Statistics

ISBN: 9781292220383

10th Global Edition

Authors: David Groebner, Patrick Shannon, Phillip Fry

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