Exhibit 13.8 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. Refer to Exhibit 13.8.For the analysis with an interaction between spending category and generation,the first hypothesis test to conduct should be about the:

Question

Exhibit 13.8 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.   Refer to Exhibit 13.8.For the analysis with an interaction between spending category and generation,the first hypothesis test to conduct should be about the:

Quizplus · Accepted Answer

The first hypothesis test to conduct should be about the interaction between spending category and generation, as this will determine whether the effect of spending category on spending habits is different across different generations. This is important in understanding how to target marketing efforts towards different age groups. Conducting tests on average spending across spending or generation categories on their own without considering the interaction would not give a complete picture of the data. Conducting tests on both the average spending across spending and generation categories can also be informative, but should be done after testing for the interaction.