1. The present annual operating budget for a company is $4,876,351.

Next year an increase is expected of anywhere from 4% to 7%.

The company anticipates opening new stores, anywhere from 5 to 10 new stores. Each new store will add an additional $329,500 to the budget.

Create a spreadsheet for next year’s operating budget reflecting the percentage increase (in 0.5% increments) and the addition of the new stores.

2. A sample of guests at 4 hotels was taken to see which factors were important in deciding whether or not to return to the hotel:


Palm Leaf Beach Bums Sun n Sand Sea n Surf

Reason for not Returning

Price 24 8 38 10

Location 37 14 7 20

Service 15 6 14 9

Accomodation 14 9 7 11

Give the expected frequencies

Give the calculated Chi Square

Give the critical Chi Square

Is the reason for not returning independent of hotel (yes or no) Must answer yes or no for independence.

Which hotels are under represented in the data for price? (The guests find price to be less important than you would expect.)

3. Use 1 way ANOVA for this problem. Work the formulas by writing them into Excel. You may use the Analysis Tool-Pak in Excel ONLY to check your results.


Null Hypothesis: No significant difference in gas mileage (shown in miles per gallon) in the 4 gasolines:

Exxon Sunoco Hess Shell

30 29 29 32

25 26 34 26

27 29 32 31

26 28 33 27

Give your calculations for SSA

Give your calculations for SSW

Give your ANOVA table

Give the calculated F

Give the critical F

Is the difference significant in the gasolines? (yes or no)

Use the Tukey multiple comparisons test to tell which pairs of means show a significant difference:

Give the critical range, giving the value for Q, etc.

Show the difference between each pair of means.

Which pair show a significant difference? Answer the question in terms of the gasolines?

Which gasoline would you use for best mileage?

4. The data below represent customer satisfaction on a scale of 1 to 10 for different roasts of coffee (Columbian espresso, French mocha, Brazilian, Italian espresso) made in different types of coffee makers (electric, drip, French press).

Coffee maker Co. Esp. Fr. Mocha Brazilian It. Esp

Electric 7.6 6.4 5.5 8.5

6.8 7.4 6.5 5.7

7.1 7.6 6.8 9.2

Drip 8.8 9.9 7.8 8.8

9.6 9.3 7.9 8.3

8.9 8.5 8.2 8.3

French Press 9.8 8.9 9.7 8.3

9.7 9.1 9.5 8.7

9.9 8.8 8.6 8.9

a) Using 2 way ANOVA give the calculated F for customer satisfaction for: (please answer in order in receive credit). Also be clear which part you are answering in a), b), c) to receive credit.

i) The different roasts

ii) The different coffee makers

iii) The Interaction effect

b) Does it appear that liking the specific roast is affected by the type of coffee maker (interaction effect). Please answer yes or no.

Why? Give a reason for your answer.

c) Is the difference significant among the roasts of coffee? Please answer yes or no.

Why? Give a reason for your answer.

d) Is the difference significant among the types of coffee makers? Please answer yes or no.

Why? Give a reason for your answer.

e) Use the Tukey multiple comparisons test to show which pairs of roasts or coffee makers show a significant difference. State whether you are using Factor A or Factor B and why. Give the calculations for the Critical Range (give the value of Q, MSE, c, r, n’) and show each pair of means that you are comparing. Make a statement about which pairs (in words) show a significant difference.)

f) Sketch the cell means plot.

g) Make one statement concerning what your graph shows (something like customers prefer electric coffee makers, etc.)