A Large Department Store Examined a Sample of the 18

question 15

Multiple Choice

A large department store examined a sample of the 18 credit card sales and recorded the amounts charged for each of three types of credit cards: MasterCard, Visa, and Discover. Six MasterCard sales, seven Visa, and five Discover sales were recorded. The store used an ANOVA to test if the mean sales for each credit card were equal. What are the degrees of freedom for the F statistic?

• A) 18 in the numerator, 3 in the denominator
• B) 3 in the numerator, 18 in the denominator
• C) 2 in the numerator, 15 in the denominator
• D) 6 in the numerator, 15 in the denominator

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Definitions:

Highly Compensated Employees

Employees who receive compensation above a specific threshold set by the IRS, subject to certain retirement plan rules.

Pension Plan

A savings strategy for retirement that mandates employers contribute to a fund reserved for an employee's future benefits.

Profit-sharing Plan

A retirement plan that gives employees a share in the profits of the company.

Coverdell Education Savings Account

A tax-advantaged saving account designed to pay for education expenses, from primary to higher education.