A market researcher is studying the spending habits of people across age groups. The amount of money spent by each individual is classified by spending category (Dining out, Shopping, or Electronics) - Factor A, and generation (Gen-X, Gen-Y, Gen-Z, or Baby Boomers) - Factor B. An incomplete ANOVA table is shown below. At the 5% significance level, the conclusion of the hypothesis test for factor A is ________.
A) do not reject the null hypothesis; we cannot conclude the average amount spent differs by spending category
B) do not reject the null hypothesis; we can conclude the average amount spent differs by spending category
C) reject the null hypothesis; we cannot conclude the average amount spent differs by spending category
D) reject the null hypothesis; we can conclude the average amount spent differs by spending category

Question

A market researcher is studying the spending habits of people across age groups. The amount of money spent by each individual is classified by spending category (Dining out, Shopping, or Electronics) - Factor A, and generation (Gen-X, Gen-Y, Gen-Z, or Baby Boomers) - Factor B. An incomplete ANOVA table is shown below.  At the 5% significance level, the conclusion of the hypothesis test for factor A is ________.
A) do not reject the null hypothesis; we cannot conclude the average amount spent differs by spending category 
B) do not reject the null hypothesis; we can conclude the average amount spent differs by spending category 
C) reject the null hypothesis; we cannot conclude the average amount spent differs by spending category 
D) reject the null hypothesis; we can conclude the average amount spent differs by spending category

Quizplus · Accepted Answer

The p-value for Factor A is less than 0.05, which means we reject the null hypothesis and can conclude that the average amount spent differs by spending category.

A Market Researcher Is Studying the Spending Habits of People