Question

A senior accounting major at Midsouth State University has job offers from four CPA firms. To explore the offers further, she asked a sample of recent trainees how many months each worked for the firm before receiving a raise in salary. The sample information is submitted to Minitab with the following results:factor 3 40.49 13.50 4.84 0.014 error 16 44.69 2.79 total 19 85.18A) Reject H0 if F >B) For the 0.05 level of significance, is there a difference in the mean difference in the mean number of months before a raise was anted among the four CPA firms?Analysis of VarianceSource df SS MS F P

Answer 1

To perform an ANOVA and determine if there is a difference in the mean number of months before a raise among the four CPA firms, calculate the sum of squares, mean squares, and F-statistic, and compare it to the critical value of F.

Step-by-step explanation:

To test if there is a difference in the mean number of months before a raise was granted among the four CPA firms, we can conduct an analysis of variance (ANOVA) using the sample information provided. The null hypothesis (H0) is that there is no difference in the mean number of months, while the alternative hypothesis (Ha) is that there is a difference.

1. Calculate the sum of squares (SS) for the factor, error, and total.

2. Calculate the mean squares (MS) for the factor and error.

3. Calculate the F-statistic by dividing the MS factor by the MS error.

4. Determine the critical value of F for the appropriate significance level and degrees of freedom.

5. Reject H0 if the F-statistic is greater than the critical value of F.

Answer 2

The use of ANOVA on the question's data set allows us to conclude that there is a significant difference in the mean number of months trainees work before receiving a salary raise among four CPA firms, since the p-value of 0.014 is less than the significance level of 0.05.

Step-by-step explanation:

The question relates to the application of an Analysis of Variance (ANOVA) in business statistics, which is a method used to determine if there are statistically significant differences between the means of three or more independent groups. Specifically, this refers to the use of ANOVA to compare the mean number of months trainees work before receiving a salary raise at four different CPA firms. According to the details, the F-statistic and p-value from an ANOVA output are used to make this determination. If the p-value is less than alpha (which is 0.05 in this case), the null hypothesis, which states there is no difference in means, would be rejected. Since the provided p-value is 0.014, which is less than 0.05, we reject the null hypothesis, indicating that there is a significant difference in the mean number of months before a raise among the four firms.