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.The value of SSE is:

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.The value of SSE is:

Quizplus · Accepted Answer

SSE stands for sum of squares of errors, which indicates the residual variation that is not explained by the model. To calculate SSE, we need to subtract the sum of squares of treatments (SST) from the sum of squares of total (SSTO) in the ANOVA table. From the table, we have SSTO = 1,274,598 and SST = 157,831, so SSE = SSTO - SST = 1,116,767 - 157,831 = 116,767. Therefore, the correct choice is C.