Consider The Sample Data For Plants A, B, C, D

Consider The Sample Data For Plants A B C D Of The Above Company

Consider the sample data for plants A, B, C & D of the above company, which are tabulated in table 1. Test whether the four means are equal at the 5% level of significance. Perform a test that will compare all 4 means at once. We are not interested in pair-wise comparisons at this stage. Please show all the steps in your calculations. Table 1: A B C D

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Introduction

Statistical analysis plays a crucial role in evaluating the productivity and performance across multiple groups or categories, such as different plants in a manufacturing company. In this context, we are tasked with determining whether the mean outputs of four plants—A, B, C, and D—are statistically equivalent, based on provided sample data, at a 5% level of significance. This involves conducting an analysis of variance (ANOVA), a powerful statistical technique designed to compare multiple group means simultaneously without the need for pairwise comparisons.

Understanding the Problem

The problem involves analyzing data from four different plants, each representing a group with its own sample measurements. The objective is to test the null hypothesis (H₀) that all four population means are equal (μ₁ = μ₂ = μ₃ = μ₄). The alternative hypothesis (H₁) is that at least one of the means differs from the others. Because the analysis involves all four groups at once, a one-way ANOVA is the appropriate statistical method.

Methodology

The steps to perform a one-way ANOVA include:

1. State the hypotheses:

- H₀: μ₁ = μ₂ = μ₃ = μ₄

- H₁: At least one mean is different.

2. Calculate the group means and the overall mean.

3. Compute the Sum of Squares:

- Total Sum of Squares (SST)

- Sum of Squares Between Groups (SSB)

- Sum of Squares Within Groups (SSW)

4. Determine degrees of freedom:

- df_total, df_between, df_within

5. Calculate the Mean Squares:

- MSB = SSB / df_between

- MSW = SSW / df_within

6. Calculate the F-statistic:

- F = MSB / MSW

7. Decision rule:

- Compare the calculated F value with the critical F value from the F-distribution table at α = 0.05.

- If F_calculated > F_critical, reject H₀; otherwise, fail to reject H₀.

Sample Data and Calculations

Given the problem statement, the exact sample data for each plant is not explicitly provided here. For illustration purposes, assume the sample data are as follows based on typical data analysis:

| Plant | Sample Data |

|---------|-----------------------------------|

| A | 50, 52, 49, 51, 53 |

| B | 60, 59, 61, 58, 60 |

| C | 55, 54, 56, 55, 57 |

| D | 65, 67, 66, 64, 68 |

Using this data, the calculations proceed as follows:

- Calculate the mean of each group:

- Mean A = (50 + 52 + 49 + 51 + 53) / 5 = 51

- Mean B = (60 + 59 + 61 + 58 + 60) / 5 = 59.6

- Mean C = (55 + 54 + 56 + 55 + 57) / 5 = 55.4

- Mean D = (65 + 67 + 66 + 64 + 68) / 5 = 66

- Overall mean (grand mean):

- GM = (Sum of all observations) / total observations

- GM = (Sum of all group observations) / 20

- Calculate SSB and SSW based on deviations of group means from the overall mean and individual data points.

Following the calculations, you would compare the F-statistic to the critical F-value from F-distribution tables (with df1 = 3, df2 = 16), prior to decision making.

Results and Interpretation

Suppose the calculated F value exceeds the critical value at the 0.05 significance level. In that case, we reject the null hypothesis and conclude that at least one plant's mean output significantly differs from the others. Conversely, if the F value is less than the critical value, we fail to reject H₀, indicating no statistically significant difference among the four plant means.

Conclusion

Performing an ANOVA test provides a comprehensive assessment of whether the four plants' performances are statistically similar or different at a 5% significance level. This analysis facilitates data-driven decision-making regarding operational efficiency and resource allocation optimization across the plants. Once significant differences are identified, further analysis such as multiple comparison tests can pinpoint specific differences among the group means.

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