What Are the Correct Assumptions for the Two-Way ANOVA Procedure

question 8

Multiple Choice

What are the correct assumptions for the two-way ANOVA procedure?

• A) The sample sizes are large (n≥ 30), and all of the (a) × (b) populations under consideration are normal.
• B) Samples are selected randomly and independently from (a) × (b) population distributions, which are all normal and have equal variance.
• C) Samples are random, from normal populations, and large (n ≥ 30).
• D) Population variances are known to be equal, samples are random, and sample size is sufficiently large such that the population distribution is of no consequence.

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Definitions:

Net Wealth

The total value of all financial and non-financial assets owned by an individual or entity minus any liabilities.

Future Prices

The expected price of a commodity, security, or currency set in a futures contract for delivery and payment at a specified future date.

Consumption Function

An economic formula representing the relationship between total consumption and gross national income, suggesting that people will spend more as their income increases.

Price Level

A metric that represents the median of present prices for all types of goods and services in the economy.