Solution) a) Johnson’s Service Center has devised three potential options available to preferred customers who


Question:

a) Johnson’s Service Center has devised three potential options available to preferred customers who redeem coupons and buy at least 10 gallons of fuel when they stop in. Option A is a flat 3 cents off each gallon. Option B is a combination of 2 cents off plus another $1 discount on the regular price of a $5 deluxe car wash. Option C is a $2 discount on the same $5 deluxe car wash but no reduction in the fuel purchase. The owner, Harold Johnson, ran each option on three different two-week trial periods and tracked daily sales receipts from those customers who redeemed their coupons. Results are shown in the table below:

Option A Option B Option C
$453 507 513 521 511 615 601 552 551 505 515 512 476 427 $492 514 536 511 528 678 611 653 596 516 534 543 498 437 $467 525 516 500 435 462 411 674 512 559 624 711 512 416

a) State the null hypothesis to test for equal population means. (5 Points)

b) Below are the results from EXCEL of ANOVA of the data at the 0.05 level of significance. Do the sample data indicate the at least one of the three population mean total returns is different from the others? Why? (Explain using “F” and “Fcrit” – a drawing is fine.)

Anova: Single Factor
SUMMARY
Groups Count Sum Average Variance
Column 1 14 7259 518.5 2555.962
Column 2 14 7647 546.2143 4340.335
Column 3 14 7324 523.1429 8389.209
ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 6169 2 3084.5 0.605377 0.550917 3.2381
Within Groups 198711.6 39 5095.168
Total 204880.6 41
Price: $2.99
Solution: The answer consists of 2 pages
Deliverables: Word Document

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