A company that employs a large number of salespeople is interested in learning w

Question

A company that employs a large number of salespeople is interested in learning which of the salespeople sell the most: those strictly on commission, those with a fixed salary, or those with a reduced fixed salary plus a commission. The previous month's records for a sample of salespeople are inspected and the amount of sales (in dollars) is recorded for each, as shown in the table. Perform an ANOVA in order to test the difference in mean amount of sales across the three employee types

Commisioned: 507,450,532,483,466,410

Fixed Salary: 425,443,437,432,444

Commision plus salary: 492, 492, 470, 439

1) the Mean Sum of Squares (between groups) is

2)the critical value of the test statistic is:

3)the observed value of the test statistic is:

4)the p value is:

Explanation / Answer

The statistical software output for this problem is:

Analysis of Variance results:
Data stored in separate columns.

Column statistics

ANOVA table

Hence,

1) Mean sum of squares (between groups) = 2396.425

2) Critical value = 3.885 [Assuming 0.05 significance level and rounded off to 3 decimal places]

3) Test statistic = 2.521 [Rounded off to 3 decimal places]

4) p - Value = 0.1218

Column n Mean Std. Dev. Std. Error Commisioned 6 474.66667 43.051907 17.575867 Fixed Salary 5 436.2 7.9183332 3.5411862 Commision plus salary 4 473.25 25.078211 12.539105

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.