The Assumptions of Single-Factor ANOVA Can Be Described Succinctly by Means

question 16

Multiple Choice

The assumptions of single-factor ANOVA can be described succinctly by means of the "model equation" $X _ {ij } = \mu _ { i } + \varepsilon _ { ij } \text { where } \varepsilon _ { ij }$ represents a random deviation from the population or true treatment mean $\mu _ { i }$ . Which of the following statements are true?

• A) The \(\varepsilon _ {ij } ^ { \prime } \mathrm { s }\)
• Are assumed to be independent.
• B) The \(\varepsilon _ { i j } ^ { \prime } \mathrm { s }\)
• Are normally distributed random variables.
• C) \(E \left( \varepsilon _ { ij } \right) = 0\)
• For every i and j.
• D) \(V \left( \varepsilon _ {ij } \right) = \sigma ^ { 2 }\)
• For every i and j.
• E) All of the above statements are true.

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Definitions:

Useful Life

The estimated duration for which an asset is expected to be functional and useful before it needs to be replaced or repaired.

Initial Cost

The initial amount of money invested or spent to purchase or start a new project, asset, or business, excluding ongoing or future costs.

Mutually Exclusive

Mutually exclusive describes a scenario where the occurrence of one event makes the occurrence of another impossible.

Unequal Lives

Refers to comparing projects or assets with different durations or expected lifetimes to make investment or capital budgeting decisions.