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3. (25pts) One of the possible reasons for corporate mergers is a potential increase in market share that can come with the pooling of company

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3. (25pts) One of the possible reasons for corporate mergers is a potential increase in market share that can come with the pooling of company markets. Suppose a random sample of CEOs is taken, and they are asked to respond on a scale from 1 to 5 (5 representing strongly agree) whether increase in market share is a good reason for a merger of their company with another. The CEOs have been categorized by size of company and years they have been with their company. Please find the data below and in file "merger sov". Company Size ($ million per year in sales) 0-5 6-20 21-100 > 100 2 3 3 3 4 4 2 4 4 2 3 5 3 0-2 NN 3 2 Years with the Company 3-5 2 1 2 3 2 3 2 3 4 4 Over 5 NN 2 3 1 2 2 3 3 NWN Test if the CEOs responses differ by experience and/or company size. More specifically, A. Does average response differ by year with the company? State the hypotheses and draw conclusion using p-value. B. Does average response differ by company size? State the hypotheses and draw conclusion using P- value. C. Does interaction exist between years with the company and company size? State the hypotheses and draw conclusion using p-value. States) O Focus MacBook Air C. Does interaction exist between years with the company and company size? State th draw conclusion using p-value. D. Use mean plots to illustrate the estimated treatment effects. Response Years Size var var N 1 1 2 3 1 1 3 2 1 1 4 2 1 5 2. 2 6 1 NIN 7 1 8 2 3 2 2 1 3 1 10 1 3 1 11 1 3 1 12 2 3 1 2 1 13 1 2 14 1 1 2 15 2 2 3 16 3 1 17 N 18 NN 3 NN NNN 19 N 2 20 3 3 2 21 N 3 3 2 22 3 2. 23 1 3 24 2 2 2 2 3 3 25 3 1 3 26 1 3 Size Years var var var Response 4 1 3 26 4 1 27 5 1 3 28 3 2 3 29 2 2 30 4 2 3 31 4 2 3 32 3 3 33 3 2 3 34 3 35 3 3 3 36 3 3 3 37 3 1 4 38 4 1 4 39 4 1 4 40 3 1 4 41 3 2 4 42 3 2 4 43 3 2 4 44 4 N 4 45 2 3 4 46 3 3 4 47 2 3 4 4 48 3 3 49 50 51

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