A management consulting company presents a 3 - day seminar on project management to

various clients. The seminar is basically the same each time it is given. However, sometimes it
is presented to high-level managers, sometimes to midlevel managers, and sometimes to low-
level managers. The seminar facilitators believe evaluations of the seminar may vary with the
audience. Suppose the following data are some randomly selected evaluation scores from
different levels of managers after they attended the seminar. The ratings are on a scale from 1
to 10, with 10 being the highest. Use a one-way ANOVA to determine whether there is a
significant difference in the evaluations according to manager level. Assume alpha = .05.
Discuss the business implications of your findings. (15 points)

Given:

  HIGH LEVEL MIDLEVEL LOW LEVEL  

  7 8 5  
  7 9 6  
  8 8 5  
  7 10 7  
  9 9 4  
  10 8  
8

Solution:

Step 1: Hypothesis:
H 0 :μ 1=μ3=... μk
H 1= At least one of tℎe meanis different ¿ eacℎ otℎer .

Step 2: Compute the degree of freedom and corresponding value in the F Table:
df c =C −1=3− 1=2
df E=N − C=18− 3=15
Critical Value
F .05,2,15=3.68
Step 3:
High Mid- Low
Level Level Level
7 8 5
7 9 6
8 8 5
7 10 7
9 9 4
10 8
8
Total 38 62 35 135
ni 5 7 6 18
8.85714 5.83333
x́ 7.6 3 3 7.5

c
SSC=∑ n j ¿ 29.6095332
j=1
nj c
SSE=∑ ∑ ¿ ¿¿
i=1 j=1
 nj c
SS T =∑ ∑ ¿ ¿ ¿
i=1 j=1

df T =N −1=18− 1=17

SSC 29.6095331
MSC= = =14.80476655
df c 2

SSE 18.89048
MSE= = =1.25936533
df E 15

MSC 14.80476655
F= = =11.75573
MSE 1.25936533

Step 4:
Anova: Single Factor

SUMMARY
Varianc
Groups Count Sum Average e
High Level 5 38 7.6 0.8
8.85714 0.80952
Mid Level 7 62 3 4
5.83333 2.16666
Low Level 6 35 3 7

ANOVA
Source of
Variation SS df MS F P-value F crit
29.6095 14.8047 11.7557 0.00084 3.68231
Between Groups 2 2 6 3 9 7
18.8904 1.25936
Within Groups 8 15 5

Total 48.5 17        

Step 5:

We reject the null hypothesis because the computed f value of 11.80 is bigger than the table f value of 3.68. Not all
resources are created equal. The ratings varied significantly depending on the degree of management.