A Local Consumer Reporter Wants to Compare the Average Costs

question 4

Multiple Choice

A local consumer reporter wants to compare the average costs of grocery items purchased at three different supermarkets, A, B, and C. Prices (in dollars) were recorded for a sample of 60 randomly selected grocery items at each of the three supermarkets. In order to reduce item-to-item variation,
The prices were recorded for each item on the same day at each supermarket.
The results of the ANOVA test are summarized in the following table.

$$\begin{array} { l r r r r r } \text { Source } & \text { df } & \text { Anova SS } & \text { Mean Square } & \text { F Value } & \text { Pr > F } \\\text { Supermkt } & 2 & 2.6412678 & 1.3206399 & 39.23 & 0.0001 \\\text { Item } & 59 & 215.5949311 & 3.6541514 & 108.54 & 0.0001 \\\text { Error } & 118 & 3.9725322 & 0.0336655 & & \\\text { Corrected Total } & 179 & 222.2087311 & & & \\\hline\end{array}$$ What is the value of the test statistic for determining whether the three supermarkets have the sam average prices?

• A) 0.0001
• B) 108.54
• C) 1.3206
• D) 39.23

---

Definitions:

Period

A specific duration of time used for financial reporting and analysis, typically a fiscal quarter or year.

Cost of Goods Sold

Direct expenditures linked to the creation of goods sold by a business.

Calculate

To determine something mathematically, such as a sum, total, or other numeric value.

Period

A length of time in financial accounting, often used to report earnings or track expenses, such as a quarter or fiscal year.