A market researcher, having collected data on breakfast cereal expenditures by families with one, two, three, four, or five chil
dren living at home, plans to use an ordinary regression model to estimate the mean expenditures at each of these five family size levels. However, the researcher is undecided between fitting a linear or a quadratic regression model, and the data do not give clear evidence in favor of one model or the other. A colleague suggests: "For your purposes, you might simply use an ANOVA model." Is this a useful suggestion? Explain.
Using the ANOVA model is a good idea because using it would give allowance For us to compare the five means of the five different family sizes. By this, during investigation there would be no confusion as to if a quadratic or linear relationship exists between the variables family size and breakfast cereal expenditure.
We would be comparing the mean expenditure of food of these 5 different family size levels so anova is useful.