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:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often including fixed dividends.

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.

Par Value

The face value of a bond or stock, representing the nominal or original value as fixed in the certificate or instrument.

Market Value

The current price at which an asset or service can be bought or sold.