Question

You are the Finance Director of a start-up that delivers online ads to end users and you are about to approve the budget for the next fiscal year. You notice that your team has projected the annual revenue goal through equal increase of monthly ad deliveries, which assumes least number of deliveries in January and the most number of deliveries in December. Before approving the budget, you want to make sure that there is indeed such a difference between the monthly number of ads delivered. You pull out the data for the current year to perform analysis of variance on the mean number of ads delivered per month. Describe: (1) which method for analysis of variance you will choose and why; (2) what statistical results you want to see in order to approve the proposed revenue plan as it is.

Answer 1

(1)
We will choose one way ANOVA (Analysis of Variances) to make sure that there is indeed such a difference between the monthly number of ads delivered because One way ANOVA compares the means of 2 or more independent groups in order to determine whether there is a statistical evidence that the associated population means are significantly different.

(2)

H0:Null Hypothesis: ( there is no difference between the monthly number of ads delivered)

HA: Alternative Hypothesis l Hypothesis: ( there is significant difference between the monthly number of ads delivered) (At least one mean is different from other 11 means) (Claim)

If the calculated value of F is less then critical value of F, the difference is not significant. Fail to reject null hypothesis.

Conclusion:
The data do not support the claim that there is significant difference between the monthly number of ads delivered. We will not approve the proposed revenue plan as it is.

If the calculated value of F is greater then critical value of F, the difference is significant. Reject null hypothesis.

Conclusion:
The data support the claim that there is significant difference between the monthly number of ads delivered. We will approve the proposed revenue plan as it is.

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