The Analysis of Variance, ANOVA, Is a Misleading Term Because

question 67

Multiple Choice

The analysis of variance, ANOVA, is a misleading term because:

• A) it is an analysis of the differences between the standard deviations of groups and not the variances.
• B) variance is a singular term implying looking at one group, whereas ANOVA takes multiple groups into is analysis.
• C) it is not an analysis of the difference between the standard deviations of groups but of the differences between the averages of groups.
• D) analysis implies that results are absolute, without error, and there is always some measureable error in statistical analysis.
• E) analysis implies practical as well as statistical significance.

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Definitions:

Fair Values

An estimate of the market value of an asset or liability based on current market prices or valuations.

Retained Earnings

The cumulative amount of profits that a company has earned, less any dividends or other distributions to shareholders over its life.

Investment in Stanton Inc.

The total financial outlay made by an entity to purchase shares or a stake in Stanton Inc., reflecting an investment decision.

Consolidated Income Statement

A financial statement that combines the income statements of a parent company and its subsidiaries.