Explain which table above represents an ANOVA problem and which one doesn't? Explain Why.
Take a gaze at the two tables I have created below. See if you are able to spot which one represents a business problem appropriate for ANOVA.
Table 1-
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Traffic Accidents
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Workman's Comp
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Criminal Assault
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Average Anticipated
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$1,200,000
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$800,000
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$185,000
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Lawyers' fees
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N = 25 people
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N = 25 people
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N = 25 people
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surveyed
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surveyed
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surveyed
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In this table my study is about the average amount of money people expect to spend on attomeys when they are injured. Is there a modification depending on type of injury? Do people supposed to spend more when the injury happened in a car, on the job or via attack from another person? If I run an insurance agency then this information about people's beliefs could tell me what type of insurance people would be most willing to buy.
Table 2:
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number of people who said,
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number of peoplewho said, "No, 1
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TOTAL
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"Yes, I hired anattomey."
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did not hire anattomey."
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Traffic Accidents
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40
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60
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100
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Workman's Comp
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77
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23
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100
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Criminal Assault
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89
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11
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100
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TOTAL
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206
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94
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300
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In this table my study question asks whether there is an association among the type of accident and the likelihood of hiring an attomey. How many people select to hire an attomey when they get injured? Are people more expected to hire an attomey for one kind of injury than another? From the results I am able to predict whether people are most likely to seek legal representation when they are involved in a traffic accident, a work-related accident or are assaulted by another person. If I need to make a TV commercial for a personal injury law firm I will know which kind of injury victim to target in my message.
Nowadays which table above represents an ANOVA problem? Which one does not? Describe Why.