Hypothesis

A corporate CEO reviews the
earnings of three divisions over the last eighteen months. Each division
reports its earnings quarterly. Based on the earnings below, is there
sufficient evidence to conclude, at the 99% level of confidence, that one of
these divisions is more profitable than the others?

Division I Division II Division
III

45 5 22

52 13 15

57 34 22

19 28 4

57 12 9

4 5 13

· State the null and alternate
hypotheses

· Calculate the sums of squares
SS(total), SS(factor), and SS(error)

· Calculate the degrees of freedom
df(total), df(factor), and df(error)

· Calculate the mean square for
factor, and the mean square for error

· Calculate the F-statistic

· Determine the critical value(s)

· State your decision: Should the
null hypothesis be rejected?

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