The production manager of a retail company chain in Australian wants to determine whether the business plant
Question:
The production manager of a retail company chain in Australian wants to determine whether the business plant location has any effect on service cost. The manager has considered the service cost of four major retail outlets in in Melbourne, Sydney, Brisbane and Adelaide. Their service costs over the past 5 months were recorded and the company has run a single factor ANOVA. The tables below represent the data set and incomplete ANOVA output.
(Assume the size of the selection retail shops are similar across the locations).
Service Cost ($ 000) Melbourne Sydney Brisbane Adelaide 250 350 320 350 280 315 250 210 310 285 340 250 250 300 350 315 315 320 210 210
Anova: Single Factor SUMMARY Groups Count Sum Average Variance Melbourne X 1405 281 980 Sydney X 1570 314 592.5 Brisbane X 1470 294 3730 Adelaide X 1335 267 3995
ANOVA Source of Variation SS df MS F P-value F crit Between Groups 5990 X X X X 3.2389 Within Groups 37190 X X Total 43180 X
At the 5% level of significance, is there evidence of a significant difference in mean service cost across each selected location? Use the six (6) steps process of hypothesis testing to answer the question.