Question: The battle between customers and car dealerships is often intense

The battle between customers and car dealerships is often intense. Customers want the lowest price, and dealers want to extract as much money as possible. One source of conflict is the trade-in car. Most dealers will offer a relatively low trade-in in anticipation of negotiating the final package. In an effort to determine how dealers operate, a consumer organization undertook an experiment. Seventy-two individuals were recruited. Each solicited an offer on his or her 5-year-old Toyota Camry. The exact same car was used throughout the experiment. The only variables were the age and gender of the “owner.” The ages were categorized as (1) young, (2) middle, and (3) senior. The cash offers are stored in columns 1 and 2. Column 1 stores the data for female owners, and column 2 contains the offers made to male owners. The first 12 rows in both columns represent the offers made to young people, the next 12 rows represent the middle group, and the last 12 rows represent the elderly owners.
a. Can we infer that differences exist between the six groups?
b. If differences exist, determine whether the differences are due to gender, age, or some interaction.

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  • CreatedFebruary 03, 2015
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