A Local Consumer Reporter Wants to Compare the Average Costs

question 8

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 are summarized in the following table. $$\begin{array} { l r r r r r } \text { Source } & \text { df } & \text { Anova SS } & \text { Mean Square } & \text { F Value } & \operatorname { Pr } > \mathrm { F } \\\hline \text { Supermkt } & 2 & 2.6412678 & 1.3206399 & 39.23 & 0.0001 \\\text { Item } & 59 & 215.5949311 & 3.6541514 & 108.54 & 0.0001 \\\text { Error } & 118 & 3.9725322 & 0.0336655 & & \\\text { Corrected Total } & 179 & 222.2087311 & & & \\\hline\end{array}$$ Based on the p-value of the test, make the proper conclusion.

• A) There is sufficient evidence (at ? = .01) to indicate differences among the mean prices of grocery items at the three supermarkets.
• B) There is insufficient evidence (at ? = .01) to indicate differences among the mean prices of grocery items at the three supermarkets.
• C) There is sufficient evidence (at ? = .01) to indicate that the mean prices of grocery items at the three supermarkets are identical.
• D) No conclusions can be drawn from the given information.

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Definitions:

Sales Returns

Goods returned by customers to the seller after the sale, which result in a reduction of revenue previously recognized.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the correct periods.

Periodic Inventory System

An inventory accounting system where the inventory count is physically conducted at specific intervals, typically at the end of an accounting period.

Net Method

An accounting method that records purchases and sales of inventory net of discounts at the time of transaction.