Comparing Average Annual Shipments of

Appliances (units)

1. Abstract

The data enables students in availing the opportunity to compare the trend of units
of four appliances Average Annual factory shipments of United States from year
1960 to 1985. The appliances selected here for this purpose are four in numbers and
these are dishwashers, disposers, refrigerators and washing machines. The Average
Annual factory shipments of appliances (variables) are of 26 years from 1960 to
1985.

2. Problem Statement

We have to check whether there is a substantial difference in the Average Annual

unit shipments of different appliances. It is obvious that the appliance sales of
different items are relevant to how much of each of item was sold in each of the year
b/w 1960 and 1985. The tests we will conduct will help us in evaluating whether the
Average Annual shipments of different appliances are equal or not.

To fulfill the objectives the hypothesis we can use to check if the Average Annual
shipments of different variables are equal are not, the hypothesis developed is
Null Hypothesis: The Average Annual factory shipments of all four variables are
equal.
OR

H :µ =µ =µ =µ
0 1 2 3 4

Alternative Hypothesis: The Average Annual factory shipments of all four

variables are different from each other.
OR

H :µ
1 1
≠ µ 2
≠ µ 3
≠ µ 4

1
4. Description
Average Annual unit factory shipments of dishwashers, disposals, refrigerators, and
washing machines in the United States from 1960 through 1985 are given. The data
provides the opportunity to compare Average Annual shipments of different
appliances in United States from 1960 to 1985. These may include following steps
1) comparing average annual factory shipments of given appliances 2) using
descriptives 3) doing one-way ANOVA 4) use of one-sample t-test 5) Overall
Conclusions.
This and other data are published currently in the Department of Commerce's
Survey of Current Business, and are summarized from time to time in their
publication, Business Statistics.

Number of cases: 26 (YEAR: 1960 to 1985)

Variable Names:

1. DISH: Domestic Factory shipments of dishwashers (thousands)

2. DISP: Domestic Factory shipments of disposers (thousands)
3. FRIG: Domestic Factory shipments of refrigerators (thousands)
4. WASH: Domestic Factory shipments of washing machines (thousands)

Note: The data is shown in appendix.

2
 Analysis

5.1 Graphical Presentation: Histogram

The figure on the left is

histogram for the distribution
of Average Annual Domestic
Factory shipments of
dishwashers (thousands). The
shape of the distribution is
negatively skewed and
negatively peaked.

3
 The figure on the left is
histogram for the distribution
of Average Annual Domestic
Factory shipments of
Disposals (thousands). The
shape of the distribution is
positively skewed and high
peaked.

The figure on the left is

histogram for the distribution
of Average Annual Domestic
Factory shipments of
Refrigerators (thousands).
The shape of the distribution
is negatively skewed and low
peaked.

4
 The figure on the left is
histogram for the distribution
of Average Annual Domestic
Factory shipments of Washing
Machines (thousands).
The shape of the distribution
is negatively skewed and high
peaked.

5.2 Descriptive Statistics

Std.
N Mean Skewness Kurtosis
Deviation

Std. Std.
Statistic Statistic Statistic Statistic Statistic
Error Error

Domestic factory
shipments of 26 2341.3846 1036.2331 -.383 .456 -1.206 .887
dishwashers(Thousands)

Domestic factory
shipments of 26 2316.2308 1003.3985 .068 .456 -1.006 .887
Disposals(Thousands)

Domestic factory 26 5111.5000 847.0302 -.243 .456 -.308 .887

5
 shipments of
Refrigerators(Thousands)

Domestic factory
shipments of Washing 26 4465.6538 551.3117 -.352 .456 .014 .887
Machines(Thousands)

Valid N (list wise) 26

Output generated through SPSS in Html format.

The descriptive statistics shown above are calculated by using SPSS. This output
shows that these twenty six observations of number of units of Appliances shipment
Average Annually.

 The Average Annual shipment of Dish washers is 2341.3846 and the average
change in Average Annual shipment of Dish washers is 1036.2331. The
coefficient of Skewness is –.383 which shows that the distribution of number of
Average Annual shipment of dishwashers is negatively skewed. The coefficient
of kurtosis is –1.206 for the distribution of Average Annual factory shipments of
units of dishwashers. This coefficient of kurtosis indicates that the distribution is
low peaked.
 The Average Annual shipment of Disposals is 2316.2308 and the average change
in Average Annual shipment of Disposals is 1003.3985 which is considerably
high, it indicates that there is much variation. And variation in case of Average
Annual shipments of Disposals is greater than that of Average Annual shipments
of Dishwashers. The Skewness coefficient is 0.068 which show that distribution
of number of Average Annual shipment of disposals is positively skewed. In the
distribution of number of Average Annual shipment of disposals, kurtosis is –
1.006, this value indicate that the distribution of number of Average Annual
shipment of disposals is low peaked.
 The Average Annual shipment of Refrigerators is 5111.5000 and the average
change in Average Annual shipment of Refrigerators is 847.0302 which is
considerably high, it indicates that there is great variation. And variation in case

6
 of Average Annual shipments of Refrigerators is far greater than that of Average
Annual shipments of Dishwashers and Disposals. The Skewness coefficient is –.
243 which show that distribution of number of Average Annual shipment of
disposals is negative skewed. In the distribution of number of Average Annual
shipment of refrigerators, kurtosis is –.308, this value indicate that the
distribution of number of Average Annual shipment of refrigerators is low
peaked.
 The Average Annual shipment of Washing Machines is 4465.6538 and the
average change in Average Annual shipment of Washing Machines is 551.3117
which is considerably high, it indicates that there is much variation. And
variation in case of Average Annual shipments of Refrigerators is greater than
that of Average Annual shipments of Dishwashers and Disposals. The Skewness
coefficient is –.352 which shows that distribution of number of Average Annual
shipment of disposals is negatively skewed. In the distribution of number of
Average Annual shipment of disposals, kurtosis is 0.014, this value indicate that
the distribution of number of Average Annual shipment of disposals is highly
peaked.

5.3 One-way ANOVA

For testing the suggested hypothesis following assumptions are made. Analysis of
Variance methods have in common a set of two assumptions:

7
1. The standard deviations (SD) of the populations for all groups are equal - this is
sometimes referred to as an assumption of the homogeneity of variance. Again, we
can represent this assumption for groups 1 through n as

2. The samples are randomly selected from the population.

Testing of Hypothesis 1:

H0: The Average Annual factory shipments of all four variables are equal.
H1: The Average Annual factory shipments of all four variables are different from
each other

Level of Significance α = 0.05

By using Factory shipments data as response variable and their order as grouping
variable, ANOVA is run by using SPSS and output generated is following.

ANOVA DATA

Sum of Squares df Mean Square F Sig.

Between Groups 162742831.000 3 54247610.333 69.952 .000

Within Groups 77549809.154 100 775498.092

Total 240292640.154 103

Ho is rejected as there is a great difference in means of different items. And there are
a lot of differences b/w groups.

Conclusion:

8
From the above out put the p-value is 0.000, which is less than given level of
significance that is 0.05. Thus it can be concluded that the Average Annual
shipments of different appliances are quite significantly different from each other.
Further it is necessary to observe which appliance has significantly different
Average Annual number of shipments. The following output generated through Post-
Hoc Test will help in elaborating this problem to some extent.

5.4 LSD (Post Hoc) Test

Output generated through LSD (Post Hoc) test is applied to test the
significance of appliances in different years. This test makes pair wise comparison
between different appliances. The appliance one and three ,one and four have
significant different units of appliances shipments as the p-value against the both
pairs is 0.000 which is substantially less than the level of significance α = 0.05.
Similarly The appliance two and three , two and four have different units of
appliances shipments as the p-value against the both couples is 0.000 which is also
less than the level of significance α = 0.05. The appliances pair of two and three ,
two and four have different units of appliances shipments as the p-value against the
both couples is 0.000 which is also less than the level of significance α = 0.05.
When we determine the pair of appliances three and one, three and two the Level of
significance α = 0.05 is greater than that of p-values of 0.000, so there is difference
in units of appliance shipments among both pairs. The appliances pair four and one
,four and two have significant different units of appliances shipments as the p-value
against the both pairs is 0.000 which is substantially less than the level of
significance α = 0.05.

9
 Multiple Comparisons Dependent Variable: DATA Method: LSD

Mean Difference (I-J) Std. Error Sig.

95% Confidence Interval

Lower Bound Upper Bound

(I) GROUP (J) GROUP

2.00 25.1538 244.2411 .918 -459.4135 509.7212

1.00 3.00 -2770.1154(*) 244.2411 .000 -3254.6827 -2285.5481

4.00 -2124.2692(*) 244.2411 .000 -2608.8366 -1639.7019

1.00 -25.1538 244.2411 .918 -509.7212 459.4135

2.00 3.00 -2795.2692(*) 244.2411 .000 -3279.8366 -2310.7019

4.00 -2149.4231(*) 244.2411 .000 -2633.9904 -1664.8558

1.00 2770.1154(*) 244.2411 .000 2285.5481 3254.6827

3.00 2.00 2795.2692(*) 244.2411 .000 2310.7019 3279.8366

4.00 645.8462(*) 244.2411 .010 161.2788 1130.4135

1.00 2124.2692(*) 244.2411 .000 1639.7019 2608.8366

4.00 2.00 2149.4231(*) 244.2411 .000 1664.8558 2633.9904

3.00 -645.8462(*) 244.2411 .010 -1130.4135 -161.2788

* The mean difference is significant at the .05 level.

Output generated through SPSS in Html format.

5.5 1- Sample T Test

H :µ0 1 =1100

10
 H:µ1 1
≠ 1100

Test Value = 1100

95% Confidence
Sig. Interval of the
Mean
t df (2- Difference
Difference
tailed)
Lower Upper
Domestic factory
shipments of 6.109 25 .000 1241.3846 822.8410 1659.9282
dishwashers(Thousands)

From the above table, it is clear that p-value is less than α = 0.05 i.e.: pre-assigned
level of significance which means that Ho should be rejected and alternative
hypothesis should be accepted which shows that population mean is not equal to
1100.

6. Overall Conclusions
Following are conclusions derived from conducted study

 The one sample t-test shows that Ho should be rejected and alternative
hypothesis should be accepted in above case.
 From ANOVA, we concluded that Thus it can be concluded that the Average
Annual shipments of different appliances are quite significantly different
from each other.

11
7. Reference:

1. http://lib.stat.cmu.edu/DASL/ predictingsales.html

8. Appendix

Data:

DISH DISP FRIG WASH

555 760 3475 3274
620 800 3480 3347
720 890 3775 3666
880 1090 4125 3949
1050 1300 4545 4190
1290 1355 4870 4347
1528 1410 4974 4406
1586 1356 4713 4323
1960 1812 5150 4482
2118 1943 5296 4378
2116 1976 5286 4093
2477 2292 5691 4608
3199 2771 6315 5107
3702 2974 6774 5504
3320 2553 5982 4948
2702 2080 4577 4228
3140 2515 4817 4492
3356 2941 5707 4933
3558 3312 5890 5038
3488 3317 5701 4965

12
2738 2960 5124 4550
2484 3179 4944 4365
2170 2780 4364 4019
3092 3662 5312 4615
3491 4087 5994 5049
3536 4107 6018 5231

13