A company operates in the United States, Europe, South America, and the Pacific Rim. Management is comparing the costs incurred in its health benefits program by employees across these four regions. It ft an ANOVA regression of the amount spent for samples of 25 workers in each of the four regions. The following table summarizes the estimates.
This analysis was done in dollars. What would change and what would be the same had the analysis been done in euros? (Assume for this exercise that 1 euro = 1.5 U.S. dollars.)
Answer to relevant QuestionsThe analysis in Exercise 25 uses South America as the omitted category. What would change and what would be the same had the analysis used the United States as the omitted reference category? Rather than create five dummy variables to represent a categorical variable C with five labels, an analyst defined the variable X by converting the categories to the numbers 1, 2, 3, 4, and 5. Does the regression of Y on X ...The 95% confidence interval for m derived from a sample of n observations from a normal population gets smaller as the sample size increases because the standard error of the mean s / √n decreases. Adding more groups to an ...We can often use an analysis of variance with data that are not well matched to a linear regression, using dummy variables to avoid the need to model a curved relationship. In this example, a bakery ran an experiment to ...1. What’s the estimated value from the ANOVA regression given by the slopes in Table 4 for the change in sales in the Midwest if ads feature the small labor partition? What’s the simple way to get this estimate? 2. The ...
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