SCENARIO 11-10-A
You Are the Quality Control Manager of a Water

question 148

Short Answer

SCENARIO 11-10-A
You are the quality control manager of a water bottles company. One of the biggest complaints in the
past years has been the breakage and, hence, the concern on the durability of the connector between
the lid and the bottle which many users use as a handle for the bottles. You have started looking for
alternative replacement for the existing connector design. Three different vendors have proposed
different designs and provided data they have collected on their designs that have been subjected to a
durability test. The data on the number of times the connectors designed by them have been used to
lift the bottles before they break from random samples of 30 bottles are shown below and also
contained in the file Scenario11-10-DataA.XLSX. $$\begin{array} { l l l l l l l l l l l } \text { Vendor A } & 1498 & 1667 & 1530 & 1458 & 1315 & 1458 & 1411 & 1348 & 1583 & 1565 \\& 1495 & 1533 & 1473 & 1654 & 1499 & 1349 & 1486 & 1739 & 1820 & 1543 \\& 1440 & 1652 & 1610 & 1660 & 1563 & 1507 & 1450 & 1501 & 1515 & 1501 \\\text { Vendor B } & 2027 & 2007 & 1977 & 1787 & 2046 & 1945 & 1898 & 2130 & 2096 & 1876 \\& 2014 & 1815 & 1982 & 2004 & 1918 & 1904 & 2061 & 1986 & 1952 & 2061 \\& 2038 & 2227 & 2030 & 2079 & 1884 & 2045 & 2009 & 1970 & 1946 & 2011 \\\text { Vendor C } & 2784 & 3151 & 3126 & 2875 & 2881 & 3000 & 2872 & 3097 & 3020 & 3077 \\& 3082 & 2931 & 2922 & 2877 & 2905 & 3079 & 2916 & 2917 & 3110 & 3121 \\& 3084 & 3065 & 2974 & 2900 & 2860 & 2989 & 2978 & 2881 & 3095 & 2893\end{array}$$ Assume that and the number of times the connectors have been used to lift the bottles before they
break follows a normal distribution. You want to test to see if there is enough evidence of a difference
in mean number of times the connectors have been used to lift the bottles before they break across the
three vendors.
-Referring to Scenario 11-10-A, what is the p-value of the test statistic for Levene's test for
homogeneity of variances?

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Definitions:

Required Rate

The minimum annual percentage return on an investment that an investor aims for, considering the investment's risk.

Retaining Earnings

Profits that a company reinvests in itself instead of paying out to shareholders as dividends.

Flotation Costs

Those costs occurring when a company issues a new security, including fees to an investment banker and legal fees.

New Common Shares

Issuance of additional shares of a company's stock, which can dilute existing shareholders' equity but raise new capital for the company.