A Study Was Conducted to Determine If Differences in New

question 77

Multiple Choice

A study was conducted to determine if differences in new textbook prices exist between on-campus bookstores, off-campus bookstores, and Internet bookstores. To control for differences in textbook prices that might exist across disciplines, the study randomly selected 12 textbooks and recorded the price of each of the 12 books at each of the three retailers. You may assume normality and equal-variance assumptions have been met. The partially completed ANOVA table based on the study's findings is shown here: Based on the study's findings, was it correct to block for differences in textbooks? Conduct the appropriate test at the alpha = 0.10 level of significance.

• A) Since F = 39.05 > Fα=0.10 = 1.88, reject the null hypothesis. This means that based on these sample data we can conclude that blocking is effective.
• B) Since F = 39.05 > Fα=0.10 = 1.88, do not reject the null hypothesis. This means that based on these sample data we can conclude that blocking is not effective.
• C) Since F = 40.05 > Fα=0.10 = 1.88, reject the null hypothesis. This means that based on these sample data we can conclude that blocking is effective.
• D) Since F = 40.05 > Fα=0.10 = 1.88, do not reject the null hypothesis. This means that based on these sample data we can conclude that blocking is not effective

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Definitions:

Clinical Trials

Research studies performed in humans that are aimed at evaluating a medical, surgical, or behavioral intervention.

Successful

The achievement of set goals or objectives, often marked by favorable outcomes.

Large Market

A market with a vast number of consumers and suppliers, often associated with significant sales potential and competitive dynamics.

Risk Premium

The extra return expected by an investor for holding a risky asset over a risk-free asset, serving as compensation for the higher risk.