Exercise

Conducting an ANOVA test

The box plots made it look like the distribution of pack price was different for each of the three shipment modes. However, it didn't tell us whether the mean pack price was different in each category. To determine that, we can use an ANOVA test. The null and alternative hypotheses can be written as follows.

\(H_{0}\): Pack prices for every category of shipment mode are the same. \(H_{A}\): Pack prices for some categories of shipment mode are different.

We'll set a significance level of 0.1.

late_shipments is available.

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Run a linear regression of pack_price versus shipment_mode using the late_shipments dataset. The formula takes the form response ~ explanatory.