Analysis of Variance (ANOVA) is a technique that can be utilized in hypothesis testing in situations where there are three or more populations with equal means, or three or more samples with equal means, depending on the experimental design of the test employed. Thoroughly describe some business situations where ANOVA tests can be performed and discuss how the results can impact the operational nature of the firm and how the results will impact the decision-making analysis utilized by the upper level management of the business organization. Be specific in your answers. (300-word minimum requirement for the answer to each question)
While most statistical procedures covered in this course up to this point require that the samples used and derived from populations that are normally distributed and that the data be measured and that the data be measured at least at the interval level. However, there are numerous situations in the business marketplace where the situations mentioned above just cannot be met. Two sets of procedures, goodness-of-fit and contingency analysis, are designed to be used in situations where normally distributed data populations and interval level measurements. Unfortunately, businesses rarely use them when they are the only situation that can return answers or results that fit the situation. Describe and discuss the exact situations where business organizations can and really should utilize statistical analysis techniques from these two procedural groups. Be thorough in your description and discussion. In addition, how can businesses utilize the results from the analysis and apply the analysis to decision-making situations. (300-word minimum requirement for the answer to each question)
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ANOVA can be used by businesses in making a wide range of decisions and determining the best course of action when several alternatives are available. As an example, a mobile manufacturing company may have decided to buy a component from a vendor. As such, they have invited bids from various vendors. They would be selecting the one with the best quality and to do this, they would need to test the quality of the samples from each vendor. They would collect the samples and obtain the relevant statistical measures to...
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