An Advocacy Group Is Interested in Determining If Gender (1

question 5

Essay

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 separately? Explain.

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Definitions:

Period Cost

Accounting costs directly expensed in the period incurred, distinct from costs associated with production which are capitalized.

Advertising Expense

Costs incurred to promote products, services, or the company brand through various advertising mediums.

Indirect Materials

Materials used in the production process but not directly traceable to a finished product, such as lubricants and cleaning supplies used in machinery.

Indirect Labor

Labor costs not directly tied to the production of goods or services, such as maintenance and supervision.