Exhibit 13.7 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).An incomplete ANOVA table are shown below. Refer to Exhibit 13.7.Which of the following is the value of MSE?

Question

Exhibit 13.7 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).An incomplete ANOVA table are shown below.  Refer to Exhibit 13.7.Which of the following is the value of MSE?

Quizplus · Accepted Answer

MSE stands for Mean Square Error and is calculated by dividing the sum of squared errors (SSE) by the degree of freedom (df). From the ANOVA table, we can see that SSE = 111670 and df = 3 x 22 = 66. Thus, MSE = SSE/df = 111670/66 = 37,170. Therefore, the best choice is C as it provides the correct value of MSE.