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) and generation (Gen-X, Gen-Y, Gen-Z, or Baby Boomers). The data and an incomplete ANOVA table are shown below. Which of the following are the competing hypotheses for the hypothesis test about the interaction? A) H₀: There is interaction between spending category and generation, H_A: There is no interaction between spending category and generation. B) H₀: μ₁ = μ₂= μ_3, H_A: Not all population means are equal. C) H₀: There is no interaction between spending category and generation, H_A: There is interaction between spending category and generation. D) H₀: μ₁ = μ₂= μ₃ = μ_4, H_A: Not all population means are equal.

Question

Quizplus · Accepted Answer

The competing hypotheses for the hypothesis test about the interaction are: H₀: There is no interaction between spending category and generation H_A: There is interaction between spending category and generation. This is because the null hypothesis for testing interaction is that there is no interaction between the two factors, while the alternative hypothesis is that there is interaction. Choice A and B are incorrect because they pertain to testing main effects rather than interaction effects. Choice D is incorrect because it includes specific statements about population means rather than interaction effects.

A Market Researcher Is Studying the Spending Habits of People