A Local Consumer Reporter Wants to Compare the Average Costs

question 51

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.
$\begin{array}{lrrrrr}\text { Source } & \text { df } & \text { Anova SS } & \text { Mean Square } & \text { F Value } & \text { Pr }>\text { F } \\\hline \text { Supermkt } & 2 & 2.6412678 & 1.3206399 & 39.23 & 0.0001 \\\text { Item } & 59 & 215.5949311 & 3.6541514 & 108.54 & 0.0001 \\\text { Error } & 118 & 3.9725322 & 0.0336655 & & \\\hline \text { Corrected Total } & 179 & 222.2087311 & & & \\\hline\end{array}$

What is the value of the test statistic for determining whether the three supermarkets have the same average prices?

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

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Definitions:

Functional Approach

A methodology in business or research that focuses on the specific roles and activities within a system or organization.

Universal Process Approach

A methodology that assumes all businesses undergo similar processes and therefore can be improved or optimized through a set of standardized practices.

Behavioral Approach

A study or method focusing on observable behaviors and the ways in which learning occurs through interactions with the environment.

Risky R&D

Research and development activities characterized by high levels of uncertainty and potential for failure, but also the possibility of significant rewards.