The investment manager of a company suspects that there is an interaction between financial market capitalization...
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The investment manager of a company suspects that there is an interaction between financial market capitalization (either small, medium or large) and the investment objective (either to seek growth or increase in value) from the annual average performance of mutual funds. The investment manager then searches the data and produces the incomplete two-way ANOVA table below: Source of Variation Market Cap Objective Interaction Error Total SS 345.1 1,167.4 df 18 MS 14.26 F 18.39 1) Complete the ANOVA table above to help the Investment Manager (5) 2) At the 5% significance level, can you conclude that there is an interaction between market capitalization and investment objectives? (5) 3) Can you do a test on the main variable? If you can, do the test at the 5% significance level. (5) 4) Why is two-way ANOVA (with or without interaction) more preferable than two two- sample T-tests in this situation? (5) The investment manager of a company suspects that there is an interaction between financial market capitalization (either small, medium or large) and the investment objective (either to seek growth or increase in value) from the annual average performance of mutual funds. The investment manager then searches the data and produces the incomplete two-way ANOVA table below: Source of Variation Market Cap Objective Interaction Error Total SS 345.1 1,167.4 df 18 MS 14.26 F 18.39 1) Complete the ANOVA table above to help the Investment Manager (5) 2) At the 5% significance level, can you conclude that there is an interaction between market capitalization and investment objectives? (5) 3) Can you do a test on the main variable? If you can, do the test at the 5% significance level. (5) 4) Why is two-way ANOVA (with or without interaction) more preferable than two two- sample T-tests in this situation? (5)
Expert Answer:
Answer rating: 100% (QA)
ANOVA Soute Ss Macket cap 3451 121 Objective 2622411 21 Interaction 303... View the full answer
Related Book For
Business Statistics a decision making approach
ISBN: 978-0133021844
9th edition
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry
Posted Date:
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