Question

Use multiple regression with indicator variables, instead of one-way ANOVA, to test whether the quality data in Table 15.1.1 show significant differences from one supplier to another. (You may wish to review the material on indicator variables from Chapter 12.)
a. Create the Y variable by listing all quality scores in a single, long column. Do this by stacking Amalgamated’s scores on top of Bipolar’s on top of Consolidated’s.
b. Create two indicator variables, one for Amalgamated and one for Bipolar.
c. Run a multiple regression analysis.
d. Compare the F statistic from the multiple regression to the F statistic from the one-way ANOVA. Comment.
e. Compare the regression coefficients for the indicator variables to the average differences in quality scores from one supplier to another. Comment.
f. Do these two methods—multiple regression and one-way ANOVA—give different answers or are they in complete agreement? Why do you think it works this way?
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