A Market Researcher Is Studying the Spending Habits of People

question 96

Multiple Choice

A market researcher is studying the spending habits of people across age groups. The amount of money spent by each individual is classified by spending category (Dining out, Shopping, or Electronics) and generation (Gen-X, Gen-Y, Gen-Z, or Baby Boomers) . The data and an incomplete ANOVA table are shown below. At the 5% significance level, the critical value for the test about the interaction is ________.

• A) 2.04
• B) 2.51
• C) 2.99
• D) 3.67

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Definitions:

Random Error Term

A component of a statistical model that captures the variability not explained by the explanatory variables.

Values

Represent individual measurements or quantities in a set of data.

Residuals

Differences between observed and predicted values in a statistical model, representing the unexplained part of the data.

Linear Regression Model

A mathematical approach that fits a linear equation to observed data to model how a dependent variable changes in relation to one or more independent variables.