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The price drivers pay for gasoline often varies a great deal across regions thro

ID: 3229215 • Letter: T

Question

The price drivers pay for gasoline often varies a great deal across regions throughout the United States. The following data show the price per gallon for regular gasoline for a random sample of gasoline service stations for three major brands of gasoline (Shell, BP, and Marathon) located in eleven metropolitan areas across the upper Midwest region (OhioGasPrices.com website, March 18, 2012).

Click on the webfile logo to reference the data.

Use  = .05 to test for any significant difference in the mean price of gasoline for the three brands. Round SS to 6 decimals, MS to 7 decimals, F to 2 decimals and p to 3 decimals, if necessary.

The p-value is

less than .05, between .05 and .125, between .025 and .05, between .05 and .10, greater than .05

What is your conclusion?
Conclude that there is a significant difference in the mean price per gallon

Conclude that there is no significant difference in the mean price per gallon.

Source DF SS MS F p Metropolitan Area Brand Error Total file WEB

Explanation / Answer

Sol:

Null hypothesis:

Ho: there isno difference in emans among three brands

Alternative Hypothesis:

H1: Atlleast one of the means is different

alpha=0.05

F=1.77

p=0.187

Staitisctical decsion:

if p<0.05 reject null hypothesis

if p>0.05 accept null hypothesis

Conclusion:

there is suufcient evidence at 5% level of significance to concluud that means are different in three barnmds of petrol

The p-value is

less than .05,

Anova: Single Factor SUMMARY Groups Count Sum Average Variance shell 11 41.8 3.8 0.00468 BP 11 42.29 3.844545 0.004867 marathon 11 42.33 3.848182 0.003856 ANOVA Source of Variation SS df MS F P-value F crit Between Groups 0.015836 2 0.007918 1.772246 0.187284 3.31583 Within Groups 0.134036 30 0.004468 Total 0.149873 32
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