THE SPRINGFIELD MILKSHED 



19 



the market, 3.7 net, actual net, etc. Uniformity of actual prices throughout a 

 milkshed might be as much of an abnormality as variation in prices at the market. 

 If there is objection to differences in shippers' prices, it should be directed at the 

 degree, the incidence, and the cause. 



The difference in prices among the areas was tested for statistical significance 

 by making an analysis of variance among three sample areas. It was essential 

 that an attempt be made to determine whether the differences were small enough 

 to have been due to chance, or whether large enough to have been caused by 

 forces other than chance. Tenable conclusions could be formed on the relation- 

 ships among the sample areas, whereas were the anahsis to be applied to all the 

 areas the number of combinations would be so large as to be unwieldy. 



A comparison of shippers' returns on a sample geographical basis brought out 

 the relatively great amount of variation which existed within areas rather than 

 between areas. The range in mean prices between the areas was only 19.6 cents 

 per hundredweight. In contrast, the smallest difference between shippers' prices 

 in any particular area was 74 cents per hundredweight found in Area 12; the 

 greatest, 122 cents per hundredweight in Area 6. The general price situation, 

 however, in Area 6 was more favorable to the shippers, the average being approx- 

 imately 20 cents higher (19.6), the standard deviation slightly lower, and sub- 

 stantially more shippers being included in the modal group. 



Figure 6. 



Average Net Prices Throughout the Springfield-Holyoke-Chicopee Milkshed, 

 1935, By Areas 



