DAT 565 - Week 4 Exercise. Questions and Answers. Complete Solutions.

DAT 565 - Week 4 Exercise. Questions and Answers. Complete Solutions. Are large companies more profitable per dollar of assets? The largest 500 companies in the world were ranked according to their number of employees, with groups defined as follows: Small = Under 25,000 employees, Medium = 25,000 to 49,999 employees, Large = 50,000 to 99,000 employees, Huge = 100,000 employees or more. An ANOVA was performed using the company’s profit-to-assets ratio (percent) as the dependent variable. Mean n Std. Dev 1. 2.8475 Small 3. 4.8265 Medium 3. 5.8610 Large 3. 4.3125 Huge 3. 4.7925 Total ANOVA Source SS df MS F p-value Treatment 643..63433 9.84 2.58E-06 Error 10,794..80661 Total 11,438.1750 498 Post hoc analysis Tukey simultaneous comparison t-values (d.f. = 495) Small Medium Huge Large 1.054 3.058 3.843 3.855 Small 1.054 Medium 3.058 3.27 Huge 3.843 4.62 1.28 Large 3.855 4.86 1.37 0.02 Critical values for experimentwise error rate: 0.05 2.60 0.01 3.18 (a) What kind of ANOVA is this (one-factor, two-factor, etc.)?  One Factor ANOVA Correct  Two Factor ANOVA (b) What is your conclusion about the research question?  Based on the p-value, we reject the null hypothesis. Correct  Based on the p-value, we do not reject the null hypothesis. (d) Do you think the variances can be assumed equal?  Yes  No Correct (e) Calculate Hartley’s test to test for unequal variances. (Round your answers to 2 decimal places.) Hcritical 1.96 Hcalc 4.24 (f) Which groups of companies have significantly different means?  Small Correct  Medium  Huge  Large Explanation (a) This is a one Factor ANOVA.