Suppose You Are to Test for Equality of Four Different $H _ { 0 } : \mu _ { A } = \mu _ { B } = \mu _ { C } = \mu _ { D }$

question 8

Essay

Suppose you are to test for equality of four different population means, with $H _ { 0 } : \mu _ { A } = \mu _ { B } = \mu _ { C } = \mu _ { D }$ Write the hypotheses for the paired tests. Use methods of probability to explain why the process of ANOVA has a higher degree of confidence than testing each of the pairs separately.

---

Definitions:

Savings

The portion of income that is not spent on current expenditures and instead set aside for future use.

Disposable Income

The disposable capital for households' spending and saving endeavors after income taxes.

Consumption

The process of purchasing goods and services to fulfill the needs and wants of individuals.

Average Propensity

The ratio of total consumption to total income, indicating how much income is spent rather than saved.