To Test to Determine Whether There Is Any Significant Difference

question 28

Essay

To test to determine whether there is any significant difference in the mean number of units produced per week by each of three production methods, the following data were collected: $$\begin{array} { c c c } \text { Method I } & \text { Method II } & \text { Method III } \\182 & 170 & 162 \\170 & 192 & 166 \\180 & 190 &\end{array}$$ At the α = .05 level of significance, is there any difference in the mean number of units produced per week by each method? Show the complete ANOVA table. (Please note that the sample sizes are not equal.)

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Definitions:

Break Even

The point at which total costs and total revenue are equal, meaning there is no net loss or gain.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Variable Cost

Variable cost refers to expenses that change in proportion to the activity or volume of production or sales in a business.

EBIT

A financial metric, Earnings Before Interest and Taxes, represents a company's earnings with all costs deducted except for interest and income taxes.