On average, over a million new businesses are started in the United States every year. An article in the Journal of Business Venturing (Vol. 11,1996) reported on the activities of entrepreneurs during the organization creation process. Among the questions investigated were what activities and how many activities do entrepreneurs initiate in attempting to establish a new business? A total of 71 entrepreneurs were interviewed and divided into three groups: those that were successful in founding a new firm (34), those still actively trying to establish a firm (21), and those who tried to start a new firm, but eventually gave up (16).

The total number of activities undertaken (i.e., dcveloped a business plan, sought funding, looked for facilities, etc.) by each group over a specified time period during organization creation was measured and the following incomplete ANOVA table produced:

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Source df SS MS F .......................................................................................

Groups 2 128.70

- -

Error 68 27,124.52 -

Source: Carter, N., Garner, W., and Reynolds, I?

"Exploring start-up event sequences." Journal of Business Venturing, Vol. 11,1996, p. 159.

a. Complete the ANOVA table.

h. Do the data provide sufficient evidence to indicate that the total number of activities undertaken differed among the three groups of entrepreneurs?

Test using a = .05.

c. What is the p-value of the test you conducted in part b?

d. One of the conclusions of the study was that the behaviors of entrepreneurs who have successfully started a new company can be differentiated from the behaviors of entrepreneurs that failed. Do you agree? Justify your answer.