A Local Consumer Reporter Wants to Compare the Average Costs

question 60

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

Based on the $p$ -value of the test, make the proper conclusion.

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

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Definitions:

Target Profit Pricing

is a pricing strategy where the price is set based on a desired profit margin added to the cost of the product.

Target Return-on-investment Pricing

This is a pricing strategy aiming to meet a specified return on investment, tailored to match or exceed company goals.

Experience-curve Pricing

A pricing strategy that takes into account the decreased costs associated with increased production experience and volume.

Profit-oriented Approaches

Business strategies aimed at maximizing profit margins and financial outcomes.