An economist wants to determine whether average price/earnings (P/E) ratios differ for firms in three industries. Independent samples of five firms in each industry produced the following results after conducting a one-way ANOVA. SSB (sum of squares between groups) = 258.82 and SST (sum of squares total) = 424.04. Based on this information, the degrees of freedom associated with the SSW (sum of squares within groups) is equal to
Question
An economist wants to determine whether average price/earnings (P/E) ratios differ for firms in three industries. Independent samples of five firms in each industry produced the following results after conducting a one-way ANOVA. SSB (sum of squares between groups) = 258.82 and SST (sum of squares total) = 424.04. Based on this information, the degrees of freedom associated with the SSW (sum of squares within groups) is equal to
Solution
The degrees of freedom associated with the Sum of Squares Within (SSW) is calculated as N - k, where N is the total number of observations and k is the number of groups.
In this case, there are 5 firms in each of the 3 industries, so N = 5*3 = 15 and k = 3.
So, the degrees of freedom within is 15 - 3 = 12.
Therefore, the degrees of freedom associated with the SSW is 12.
Similar Questions
An economist wants to determine whether average price/earnings (P/E) ratios differ for firms in three industries. Independent samples of five firms in each industry produced the following results after conducting a one-way ANOVA. SSB (sum of squares between groups) = 258.82 and SST (sum of squares total) = 424.04. Based on this information, what would be the exact value of MSB (mean square between)?
An economist wants to determine whether average price/earnings (P/E) ratios differ for firms in three industries. Independent samples of five firms in each industry produced the following results after conducting a one-way ANOVA. SSB (sum of squares between groups) = 258.82 and SST (sum of squares total) = 424.04. Based on this information, what would be the value of the test statistic used to test whether average P/E ratios differ in the three industries. Assume that P/E ratios are normally distributed. Round your final answer to two decimal places.
A financial analyst wants to determine the relationship between a company's earnings per share (EPS, Y, in dollars) and its revenue (X, in million dollars). Assuming a linear relationship between Y and X, the analyst used the least-squares method and found that the Y-intercept = 1.75 and the slope = 0.42. Also, the sum of squares total (SST) and the error sum of squares (SSE) were equal to 82000.12 and 15200.43, respectively.Based on this information, what is the coefficient of determination? Round your final answer to four decimal places. Note: don't put your answer in percentage form.
According to the null hypothesis, in a one-way ANOVA the ratio of SSbetween to SSwithin should be 1. Why? Because power is equal to 1 – beta As a result of the Central Limit Theorem Because power is inversely related to SSbetween Because all sample groups are drawn from the same population
By coincidence, two experiments with an experimental group and a control group come up with the same t value. But one is based on 100 people total, and the other is based on 10 people total. The one with only 10 people, compared to the larger experiment, will have:Question 2Answera.A larger degrees of freedomb.A smaller standard errorc.A larger p-valued.A larger average of means
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.