A business analyst was interested in the variation of sales income across four shops in a retail chain. He ran an ANOVA with the predictor variable 'shop location', which had four categories, 'High street', 'Outlet', 'Online' and 'Suburb'; the outcome variable was 'monthly sales income'. His ANOVA had an F-statistic of 98.12 (p 0.02). How would you interpret his findings?
A)There is no significant difference in monthly sales income by shop location
B)There is a significant difference in monthly sales income by shop location.
C)There is insufficient information; the results of Post hoc tests are needed.
D)The results are ambiguous.

Question

Quizplus · Accepted Answer

The ANOVA resulted in a significant F-statistic of 98.12 with a p-value of 0.02. This indicates that there is a significant difference in monthly sales income by shop location. Post hoc tests may be conducted to determine which locations have significantly higher or lower sales income.

A Business Analyst Was Interested in the Variation of Sales