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An advocacy group is interested in determining if gender (1 = Female, 2 = Male) affects executive level salaries. They take a random sample of executives in three different industries: (1 = Consumer Goods, 2 = Financial, 3 = Health Care). Salary data are collected. The two-way ANOVA results appear below.
a. Is this an experiment or observational study?
b. Are the conditions for two-way ANOVA met?
c. If so, perform the hypothesis tests and state your conclusions in terms of amount spent online, gender, and income level.
d. Is it appropriate to interpret the main effects in this case? Explain.
Inventory Turnover
A ratio indicating how often a company sells and replaces its stock of goods during a particular period, a measure of efficiency in managing inventory.
Current Ratio
Indicates the extent to which current liabilities are covered by those assets expected to be converted to cash in the near future; it is found by dividing current assets by current liabilities.
Obsolete
Refers to products, technologies, or methods that are out-of-date, no longer usable, or have been replaced by new versions.
Market Value Ratios
Relate the firm’s stock price to its earnings and book value per share.
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