An Airline Wants to Select a Computer Software Package for Its

question 31

Multiple Choice

An airline wants to select a computer software package for its reservation system. Four software packages (1, 2, 3, and 4) are commercially available. An experiment is set up in which each package is used to make reservations for 5 randomly selected weeks and data on the number of passengers that are bumped over a month are collected. (A total of 20 weeks was included in the experiment.) The variability of the number of passengers that are bumped is found to be roughly the same for the 4 packages. The distribution on the number of passengers that are bumped has been found out to be right-skewed for package 1 and 4, left-skewed for package 2 and normal for package 3. Which of the following tests will be the most appropriate to find out if the average number of passengers being bumped over a month is the same across the 4 packages?

• A) paired t test
• B) pooled-variance t test
• C) Kruskal-Wallis rank test
• D) one-way ANOVA F test for differences among more than two means

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Definitions:

Variable Costing

An accounting method where only the variable production costs are allocated to the product, while fixed costs are treated as period costs.

Net Operating Income

The total income from operations of a company before taxes and interest deductions.

Variable Costing

An accounting strategy that only accounts for variable production expenditures (direct materials, direct labor, and variable manufacturing overhead) in product pricing.

Unit Product Cost

The total cost (both direct and indirect) to produce a single unit of product, often used to set selling prices and assess profitability.