An Airline Wants to Select a Computer Software Package for Its

question 145

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 variance on the number of passengers that are bumped is found to be roughly
The same for the 4 packages. Which of the following tests will be the most appropriate to find out
If the mean 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) One-way ANOVA F test for differences among more than two means.
• D) Two-way ANOVA F test for interaction effect.

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Definitions:

Short-Run Average Total Cost Curve

A graphical representation that shows the average total cost of producing different levels of output in the short run, when at least one input is fixed.

Fixed Cost

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

Output

The quantity of products or services generated by an enterprise, sector, or economic system.

Physical Capital

Assets used in the production process that are physical in nature, such as buildings, machinery, and equipment.