TABLE 11-6
as Part of an Evaluation Program, a Sporting

question 142

Multiple Choice

TABLE 11-6
As part of an evaluation program, a sporting goods retailer wanted to compare the downhill coasting speeds of 4 brands of bicycles. She took 3 of each brand and determined their maximum downhill speeds. The results are presented in miles per hour in the table below.
$$\begin{array} { c c c c c } \hline \text { Trial } & \text { Barth } & \text { Tornado } & \text { Reiser } & \text { Shaw } \\\hline 1 & 43 & 37 & 41 & 43 \\2 & 46 & 38 & 45 & 45 \\3 & 43 & 39 & 42 & 46\end{array}$$
-Referring to Table 11-6, what is the null hypothesis for Levene's test for homogeneity of variances?

• A) H0 : MA = MB = MC = MD
• B) \( H_{0}: \sigma_{A}^{2}=\sigma_{B}^{2}=\sigma_{C}^{2}=\sigma_{D}^{2} \)
• C) \( H_{0}: \pi_{A}=\pi_{B}=\pi_{C}=\pi_{D} \)
• D)\( H_{0}: \mu_{A}=\mu_{B}=\mu_{C}=\mu_{D} \)

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Definitions:

Inflation Rate

The speed at which the average price level of goods and services increases, leading to a decrease in buying power.

Long-Run Aggregate Supply

The total output of goods and services that an economy can produce when both labor and capital are fully employed, at full capacity.

Long-Run Phillips Curve

A macroeconomic concept that suggests there is no long-term trade-off between inflation and unemployment, implying that in the long run, the economy reaches a natural rate of unemployment regardless of inflation.

Natural Rate

The natural rate often refers to the natural rate of unemployment, which is the level of unemployment consistent with a stable inflation rate over time.