The price drivers pay for gasoline often varies a great deal across regions thro
ID: 3315031 • 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 datafile 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 6 decimals, F to 2 decimals and p to 3 decimals, if necessary.
The p-value is - Select your answer -less than .05between .05 and .125between .025 and .05between .05 and .10greater than .05Item 16 .
What is your conclusion?
Source DF SS MS F p Metropolitan Area Brand Error TotalExplanation / Answer
Here we will perform ANOVA using MINITAB.
STEPS
Make 3 columns named,Price,Brand & Metropolitan Area and put the data into corresponding coulmn > Stat > ANOVA > General Linear Model > Fit General Linear Model > Responses: Price Factors: Brand 'Metroplitan Area' > Ok
OUTPUT
General Linear Model: Price versus Brand, Metropolitan Area
Method
Factor coding (-1, 0, +1)
Factor Information
Factor Type Levels Values
Brand Fixed 3 BP, Marathon, Shell
Metropolitan Area Fixed 11 Akron,Ohio, Cincinnati,Ohio, Cleveland,Ohio, Columbus,Ohio,
Ft. Wayne,Indiana, Indianapolis,Indiana, Lansing,Michigan,
Lexington,Kentucky, Louisville,Kentucky, Muncie,Indiana,
Toledo,Ohio
ANOVA Table
The p-value for testing any significant difference in the mean price of gasoline for the three brands is 0.000,which is less than 0.05,the level of significance.Hence we reject the null hypothesis i.e. we conclude there is a significant difference in the mean price of gasoline for the three brands.
Source DF SS MS F P Metropolitan Area 2 0.01693 0.008464 6.58 0.006 Brand 10 0.10802 0.010802 8.39 0.000 Error 20 0.02574 0.001287 Total 32 0.15069Related Questions
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