Exhibit 10-14
the Following Is Part of an ANOVA Table

question 107

Multiple Choice

Exhibit 10-14
The following is part of an ANOVA table that was obtained from data regarding three treatments and a total of 15 observations.
$$\begin{array} { l c c } \begin{array} { l } \text { Source of } \\\text { Variation }\end{array} & \begin{array} { c } \text { Sum of } \\\text { Squares }\end{array} & \begin{array} { c } \text { Degrees of } \\\text { Freedom }\end{array} \\\text { Between Treatments } & 64 & \\\text { Error Within Treatments) } & 96 &\end{array}$$
-Refer to Exhibit 10-14. The number of degrees of freedom corresponding to between treatments is

• A) 12
• B) 2
• C) 3
• D) 4

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Definitions:

Marginal Cost

The increase or decrease in total production cost when producing one additional unit of a good.

Average Cost

The total cost of production divided by the quantity of output produced, also known as the cost per unit.

Marginal Cost

The escalation in aggregate cost that comes from generating one more unit of a product or service.

Fixed Cost

Costs that do not change with the amount of goods or services produced by a business.