Donio, Donnabel L.

BSBA-OM301A
09 PRACTICE PROBLEM 1
A management consulting company presents a three-day seminar on project
management to various clients. The seminar is the same each time it is given. However,
sometimes it is presented to high-level managers, sometimes to mid-level managers,
and sometimes to low-level managers. The seminar organizers believe evaluations of
the seminar may vary with the audience. Suppose the following data are some
randomly selected with 10 being the highest. Use a one-way ANOVA to determine
whether there is a significant difference in the evaluations according to the manager
level. Assume ꭤ = 0.05. Discuss the business implications of your findings. (15 points)
High-level managers (X1) Mid-level managers (X2) Low-level managers (X3)
7 8 5
7 9 6
8 8 5
7 10 7
9 9 4
10 8
8

Hypothesize:
HO: µ1 = µ2 = µ3 = … =
H1: At least one of the means is different from the others.
Degrees of Freedom
dfc = C – 1 = 3 – 1 = 2
dfE = N – C = 18 – 3 = 15
Therefore, the critical F values is:
F .05,2,15 = 3.68
Mean:
x̄ 1 = 38 / 3 = 12.67
x̄ 2 = 62 / 3 = 20.67
x̄ 3 = 35 / 3 = 11.67
Grand Mean:
G 135
= =7.50
N 18

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 SS total = ∑(x - x̄ )2 = (7 – 7.50)2+(7-7.50)2+(8-7.50)2+(7-7.50)2+(9-7.50)2+…(4-
7.50)2+(8-7.50)2 = 27.50
SSE = = ∑(x1 - x̄ 1)2+(x2- x̄ 2)+(x3- x̄ 3)2 = (7-12.67)2+(7-12.67)2+(8-12.67)2+…(8-11.67)2
= 1328.61
SSC = 27.50 – 1328.61 = 1301.11
SSE 1301.11
MSE= = =650.56
dfw 2

SSC 1328.61
MSC= = =88.57
dfe 15

MSC 650.56
F= = =7.35
MSE 88.57

Output Table
Source of variance SS df MS
F
Between groups 1328.61 2 88.57
7.35
Within groups 1301.11 15 650.56
Total 2,629.72 17

Result:
The decision is to reject the null hypothesis, as the observed value of 7.35 is greater
than the critical table F value of 3.68. Thus, there is a significant difference in the
evaluations according to the manager level.

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