Question

A business school Dean wanted to test the null hypothesis that the mean GPA upon graduation is the same for Marketing, Management, Accounting, and Finance majors. Assume that for each major, the GPAs upon graduation are approximately normally distributed with the same variance. The appropriate Excel tool to test the above null hypothesis is: Question 12 options: A) Anova: Single Factor B) Correlation C) t-Test: Two-Sample Assuming Equal Variances D) t-Test: Two-Sample Assuming Unequal Variances

Answer 1

Answer: Option A.  ANOVA: Single factor

ANOVA or Analysis of Variance is a statistical technique that is used to determine if the difference between the means of three or more independent groups of data are statistically significant.  

ANOVA was developed in order to cater to the necessity of having a statistical technique to compare the difference between the means of three or more groups of data.

In this question the Dean wants to test the null hypothesis that the mean GPA is the same for Marketing, Management, Accounting and Finance majors. Since he needs to compare four independent groups of data, single factor ANOVA is the most appropriate Excel tool.