1342 words - 5 pages

In today's highly competitive business world, researchers and analysts must maintain degrees of high standards in the research and evaluation departments. Staying on top of the latest marketing techniques, keeping abreast of consumer demands to ensure the highest quality customer service, achieving cost affective productivity, and maintaining quality production are just a few of the things that companies constantly research and analyze. Researching, testing, and analyzing can help ensure management officials that their company will be successful in today's business world.Description and Identifying the DataDominion Building Products operates six service centers within the United States. These centers are located in Adel, IA, Ceres, CA, Birmingham, AL, Elkhart, IN, and two in Houston, TX. The primary ranking instrument for each service center is the total sales dollars tabulated at the end of each month. However, Dominion does track another factor that will further help determining service center rankings among the lowest ranked centers. That is the number of sales orders processed by the service centers each month.Birmingham and the two service centers in Houston all have similarly high sales dollars and process a high volume of sales orders each month. The number of sales orders written differs from the number of sales orders processed. For example, a written order in March may not ship until April. Once an order ships, the sales order is processed and counted as a completed sales order for that month.While Adel, Ceres, and Elkhart are similar in size, the dollar volumes for each location can fluctuate from month-to-month enough so there is no clear ranking among these centers. However, it seems the yearly totals in the past for sales orders processed would indicate that each of these three service centers produces a dissimilar amount of processed sales orders each month. Therefore, the question could arise if there is any difference in the mean amount of orders processed each month among these three service centers. Based on the monthly total of sales orders processed by the Adel, Ceres, and Elkhart service centers from 2005, an ANOVA test will help answer this question.Examining the ANOVA TestAn ANOVA (Analysis of Variance), sometimes called an F test, is closely related to the t test. The major difference is that, where the t test measures the difference between the means of two groups, an ANOVA test evaluates the difference between the means of two or more groups. A one-way ANOVA, or single factor ANOVA, tests differences between groups that are only classified on one independent variable. Multiple independent variables can also used to test for interactions using factorial ANOVA. The advantage of using ANOVA rather than multiple t tests is that it reduces the probability of a Type I error. Making multiple comparisons increases the likelihood of finding something by chance and making a Type I error.From the example of Dominion Building...

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