TABLE 10-14
a Problem with a Telephone Line That Prevents

question 129

Multiple Choice

TABLE 10-14
A problem with a telephone line that prevents a customer from receiving or making calls is disconcerting to both the customer and the telephone company. The data on samples of 20 problems reported to two different offices of a telephone company and the time to clear these problems (in minutes) from the customers' lines are collected. Below is the Excel output to see whether there is evidence of a difference in the mean waiting time between the two offices assuming that the population variances in the two offices are not equal.
$$\begin{array}{l}\text { t- Test: Two- Sample Assuming Unequal Variances }\\\begin{array} { l r r } \hline & \text { Office 1 } & \text { Office 2 } \\\hline \text { Mean } & 2214 & 2.0115 \\\text { Variance } & 2.951657 & 3.57855 \\\text { Observations } & 20 & 20 \\\text { Hypothesized Mean Difference } & 0 & \\\mathrm { df } & 38 & \\\mathrm { t } \text { Stat } & 0.354386 & \\\mathrm { P } ( \mathrm { T } < = \mathrm { t } ) \text { one- tail } & 0.362504 & \\\mathrm { t } \text { Critical one- tail } & 1.685953 & \\\mathrm { P } ( \mathrm { T } < = \mathrm { t } ) \text { two- tail } & 0.725009 & \\\mathrm { t } \text { Critical two- tail } & 2.024394 &\end{array}\end{array}$$
-Referring to Table 10-14, what assumptions are necessary for testing if there is evidence of a difference in the variability of the waiting time between the two offices to be valid?

• A) Both samples are random and independent.
• B) Both sampled populations are normally distributed.
• C) Neither A nor B is necessary.
• D) Both A and B are necessary.

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Definitions:

Direct Costs

Expenses directly associated with the production of goods or services, such as raw materials and labor.

Variable Costs

Costs that vary directly with the level of production or volume of output, including materials and labor directly involved in a company's manufacturing process.

Direct Labor Cost

The total cost of all labor that can be directly attributed to the production or manufacturing of goods or services.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, excluding direct materials and direct labor costs.