The prior What Do You Think questions introduced an experiment on how the level of detail and industry type affects readers’ opinions of a corporate statement.
a. The data in Table 2 come from a randomized experiment. Suppose instead that some readers were shown a retail statement after reading an online story about accounting fraud in the retail industry and other readers were given financial or manufacturing statements. Would this change in the data collection affect how one should interpret the results? Explain.a
b. Figure 6 shows boxplots for every combination of the two factors. What, if any, outlying groups indicate that the two-way ANOVA model should not be used?b
c. Why is the residual plot in Figure 6 difficult to use for judging the model?c
d. What other plots would be useful to evaluate the assumptions of using a two-way ANOVA for these data?d
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