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The management of discount furniture a chain of discount furniture stores in the north east , designed an incentive plan for sales person. To evaluate this innocative plan , 12 salespeople were selected at random and their weekly incomes before and after the plan were recorded.

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Answer #1

a) The null hypothesis is -

H0 :\mu_{1}=\mu_{2}=\mu_{3} against H1: atlest one \mu_{i}\neq \mu_{j} for all i=j=1,2,3

b) Decision rule -

If, calculates p-value for the test is less than \alpha =0.05, then reject H0 otherwise fail to reject 100* \alpha % level of significant

c) the values of SST, SSE and SS total

SST = 62.17, SSE = 12.75, SS total = 74.92

d)

ANOVA Table    
Source        DF        SS        MS        F       P-value
Treatmen   2    62.17     31.08    21.94    0.000
Error      9        12.75      1.42
Total            11       74.92

e) Here, P-value is less than \alpha =0.05 So we reject H0 at 5 % level of significance.

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