UNIVERSITY OF GHANA BUSINESS SCHOOL

UGBS 301 – QUANTITATIVE METHODS FOR BUSINESS

ANALYSIS OF VARIANCE (NOVEMBER 2018)
Not to be submitted

1. Which of the following assumptions must be met to use ANOVA?

a. There is homogeneity of variance
b. The data must be normally distributed
c. Random sampling of cases must have been taken
d. All of the above
e. None of the above

2. What does ANOVA calculate?

a. Q-scores b. F ratios c. T-scores d. Z-scores e. R ratios

3. For an ANOVA test involving 4 independent groups, which of the following are possible
hypotheses
I. H0: µ1= µ2= µ3= µ4; H1: µ1≠ µ2≠ µ3≠ µ4;
II. H0: µ1= µ2= µ3= µ4; H1:at least one group mean is different
III. H0: µ1= µ2= µ3= µ4; H1: µ1≠ µ2 ≠ µ3= µ4;
IV. H0: µ1= µ2= µ3= µ4; H1: µi≠ µj for i≠j
V. I. H0: µ1= µ2= µ3= µ4; H1: all the means are different

A. I, II and V Only B. I, II and IV only C. I and II only D. II and IV only

E. II, IV and V Only F. All of the above G. None of the above

4. How many independent and dependent variables are in a One-Way within groups ANOVA?
a. 1 independent variable and 1 dependent variable
b. 1 independent variable and 3 dependent variables
c. 1 independent variable and 2 dependent variables
d. 2 independent variables and 1 dependent variable
e. 3 independent variables and 1 dependent variable
f. None of the above

5. In an ANOVA test, the following information is provided:

Treatment 1 Treatment 2 Treatment 3
Sample size 20 10 5
Sample Mean 4 8 9

The overall grand mean for the treatment is

A. 5.86 B. 6.67 C. 7.00 D. 7.25 E. 8.25

6. In an analysis of variance problem involving 3 treatments and 10 observations per treatment,

SSE = 399.6. The MSE for this situation is
a. 133.2 b. 13.32 c. 14.8 d. 30.0

7. The F-critical value with 6 numerator and 60 denominator degrees of freedom at 𝛼 = 0.05 is
a. 3.74 b. 2.25 c. 2.37 d. 1.96
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8. A Psychologist was interested in whether TV shows lead to a more positive outlook in human life.
People were split into 4 groups and taken into a room to view a programme. The four groups saw
the yolo show, BBC news, rhythms and the rundown. After the programme, a blood sample was
taken and the serotonin levels measured (more serotonin means more happy). The table below
shows the result of serotonin levels for each group
Yolo show BBC news Rhythms Rundown
11 4 4 7
7 8 3 7
8 6 2 5
14 11 3 4
11 9 6 9
10 8 3
5 11
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𝑥̅ (yolo) = 9.4286 𝑥̅ (BBC) = 7.6667 𝑥̅ (rhythms) = 3.6 𝑥̅ (rundown) = 6.125
∑(𝑥𝑖 − 𝑥̅ )2 = 53.71 ∑(𝑥𝑖 − 𝑥̅ )2 = 29.33 ∑(𝑥𝑖 − 𝑥̅ )2 = 9.20 ∑(𝑥𝑖 − 𝑥̅ )2 = 58.88

From the table above assist the Psychologist to determine the level of difference in positive
outlook in human life by answering the following questions
a. State the appropriate hypothesis for the level of positive outlook in human life
b. Test the hypothesis to identify the differences in level of outlook for the various groups. Assume
F0.05,3,22 = 3.05
c. What will be your recommendation to the psychologist on the various programmes in human
life?
d. Using Fishers LSD comparison approach, conduct a pairwise test to determine if there exists
significant differences in the pairs of Yolo show-BBC news and BBC-Rhythms. Conclude on your
results.
9. The Quality Assurance Division of University of Ghana is concerned that there seems to be
significant differences in the performance of Main Campus, City Campus and Distance Education
students. The table below contains data on the average GPA of graduating students in some
randomly selected years over a 10-year period.
Year Main City Distance
1 2.5 2.2 1.9
2 2.4 2.5 2.0
3 2.6 2.4 1.8
4 2.4 2.4 2.4
5 2.4 2.0 1.9
6 2.8 1.9 2.0
7 2.2 2.3 1.8
8 2.3 2.2 2.2
9 2.4
10 2.6
Total 24.6 17.9 16

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 Let 𝜇1, 𝜇2, 𝜇3 be the population mean GPA of Main, City and Distance education students
respectively. The following are important summary from the GPA table above.
Total Sum of Squares (SST) = 1.805. Sample means for Main, City and Distance campuses are
respectively, ̅̅̅
𝑥1 = 2.46, ̅̅̅
𝑥2 = 2.24, and ̅̅̅
𝑥3 = 2.25
a. State the appropriate hypothesis for the GPA performance study.
b. Fill in the ANOVA table for the GPA performance study below. Show your work.
Source SS Df MS F P-value Fcrit
Between 0.0002
Within
Total

c. From the calculations in the table above, test whether there is sufficient evidence to reject the
null hypothesis at alpha=0.05 level of significance.
d. Using Tukey Kramer comparison approach, conduct a pairwise comparison test to see if there
exists significant difference between the pairs of Main-Distance, and City-Distance. Use
alpha=0.05. Test using 𝑞𝛼 = 3.07
e. Assume there is no significant difference in student GPA between Main and City campus, as
the head of the quality assurance division, and based on the results from ANOVA table, in addition
to your answers in question c and d above, summarise the findings form your study to the Vice
chancellor including your recommendations.
10. A horticulturist was investigating the phosphorus content of tree leaves from three different
varieties of apple trees (1, 2, and 3). Random samples of five leaves from each of the three varieties
were analysed for phosphorus content. The data are given below. Use these data to test the
hypothesis of equality of the mean phosphorus levels for the three varieties at a 5% level of
significance

Variety Phosphorus content

1 0.35 0.4 0.58 0.5 0.47
2 0.65 0.7 0.9 0.84 0.79
3 0.6 0.8 0.75 0.73 0.66

11. An entertainment company wishes to compare the performance among three hit musical movies
in the early and mid-20th century – Mary Poppins, Sound of Music and Chitty Chitty Bang Bang. To make
this comparison, a set of 17 independent film critics were made to rank these movies on a scale of
1 to 10 based on criteria like pictography, music quality, level of musical influence, etc. Out of
these 17 critics, 6 were made to rate Mary Poppins, another set of 6 critics were made to rate Sound
of Music whilst the remaining were made to rate Chitty Chitty Bang Bang.
The results of their ratings are as given in the table below:

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 Mary Poppins Sound of Music Chitty Chitty Bang Bang
4 6 5
3 9 4
5 6 2
4 8 3
6 7 6
5 6

a. Formulate the required null and alternate hypothesis to test for the differences in the
average scores among the three movies
b. Calculate all the required sum of squares
c. Construct an ANOVA table to illustrate the various sum of squares, degrees of freedom,
mean square and F ratios
d. Is there significant evidence to prove that differences exist in the ratings
e. The producers of Sound of Music claims that their performance outweighs that of the other
two musical movies, provide the necessary pairwise tests to prove or disprove their claim.
(use a 5% level of significance)

12. A medical statistician was interested in comparing blood pressure among 21 patients taking three
different drugs; A, B and C and the data are given as follows.

Drug A 110 115 120 125 130 135 140

Drug B 105 115 125 125 125 140 140
Drug C 130 145 145 150 150 170 175
a. State the appropriate null and alternate hypothesis.
The following is an output of the analysis of variance test.

SUMMARY
Groups Count Sum Average
Drug A 7 A B
Drug B 7 875 C
Drug C 7 E D

Source of Variation Sum of squares Degree of freedom Mean Square F statistic

Between Groups L 2 I K
Within Groups 3092.857 G J
Total F H

b. Complete the table above

c. Conclude at a 1% level of significance as to whether the blood pressure is significantly
different among the three drugs.
d. Identify the exact pairwise differences in your test in (b) above if there indeed exist significant
differences.
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13. A research study was conducted to examine the efficacy of a new antidepressant. Depressed
patients were randomly assigned to one of three groups: a placebo group, a group that received a
low dose of the drug, and a group that received a moderate dose of the drug. After four weeks of
treatment, the patients completed the Beck Depression Inventory. The higher the score, the more
depressed the patient. The data are presented below.

Moderate Lower
Placebo
Dose Dose
38 22 14
47 19 26
39 8 11
25 23 18
42 31 5

a. Compute the required null and alternate hypothesis

b. Find the appropriate sum of squares and complete the ANOVA table
c. Is there a significant difference among the levels of depression among the groups (use a
1% level of significance)?
d. Provide the necessary pairwise tests using the Fishers LSD procedure to identify
differences in the pairs of groups
e. The medical director wants to provide a moderate dose of the anti-depressant as a standard
prescription and dosage, what will be your advice to the director after conducting this test

14. A clinical psychologist wishes to compare three methods for reducing hostility levels in university
students, and used a certain test (HLT) to measure the degree of hostility. A high score on the test
indicated great hostility. The psychologist used 24 students who obtained high and nearly equal
scores in the experiment. Eight were selected at random from among the 24 problem cases and
were treated with method 1. Seven of the remaining 16 students were selected at random and
treated with method 2. The remaining nine students were treated with method 3. All treatments
were continued for a one-semester period. Each student was given the HLT test at the end of the
semester, with the results shown in the table below. Use these data to perform an analysis of
variance to determine whether there are differences among mean scores for the three methods.
Use α = .05.

Method Test scores

1 96 79 91 85 83 91 82 87
2 77 76 74 73 78 71 80
3 66 73 69 66 77 73 71 70 74