SCENARIO 10-1
an Airline Wants to Select a Computer Software

question 38

Multiple Choice

SCENARIO 10-1
An airline wants to select a computer software package for its reservation system.Four software packages (1, 2, 3, and 4) are commercially available.The airline will choose the package that bumps as few passengers as possible during a month.An experiment is set up in which each package is used to make reservations for 5 randomly selected weeks.(A total of 20 weeks was included in the experiment.) The number of passengers bumped each week is obtained, which gives rise to the following Excel output: $$\begin{array} { l l l l l l l } \text { ANOVA } & & & & & \\\hline \text { Source of Variation } & \text { SS } & \text { df } & \text { MS } & F & \text { P-value } & \text { F crit } \\\hline \text { Between Groups } & 212.4 & 3 & & 8.304985 & 0.001474 & 3.238867 \\\text { Within Groups } & 136.4 & & 8.525 & & & \\\\\text { Total } & 348.8 & & & & & \\\hline\end{array}$$
-Referring to SCENARIO 10-1, the within groups degrees of freedom is

• A)3
• B)4
• C)16
• D)19

---

Definitions:

Compensating Variation

An economic concept describing the amount of additional income that would leave someone as well off after a price change as they were before it.

Price of Earrings

The amount of money required to purchase earrings, which can vary based on materials, brand, and design.

Utility Function

An analytical model that illustrates how buyers prioritize various combinations of products based on the amount of pleasure or utility derived from those combinations.

Consumer's Surplus

The variance between the aggregate sum consumers intend and have the means to pay for a good or service, and the sum they actually pay.