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

question 119

Multiple Choice

SCENARIO 11-10-B
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-DataB.XLSX. $$\begin{array} { l l l l l l l l l l l } \text { Vendor A } & 1460 & 1519 & 1364 & 1521 & 1628 & 1265 & 1552 & 1496 & 1411 & 1614 \\& 1508 & 1587 & 1484 & 1554 & 1459 & 1529 & 1515 & 1446 & 1517 & 1511 \\& 1563 & 1548 & 1536 & 1478 & 1665 & 1656 & 1544 & 1361 & 1573 & 1429 \\\text { Vendor B } & 2941 & 2975 & 3231 & 2890 & 3001 & 2930 & 2924 & 2916 & 3048 & 3066 \\& 3012 & 3108 & 2982 & 3126 & 3105 & 2879 & 2944 & 3066 & 2984 & 3057 \\& 3217 & 3058 & 2987 & 2977 & 3178 & 3252 & 3024 & 3156 & 3029 & 3103 \\\text { Vendor C } & 2020 & 1928 & 2135 & 1777 & 2005 & 2061 & 2029 & 1860 & 1967 & 2099 \\& 2031 & 2188 & 2137 & 1945 & 1952 & 1905 & 2031 & 1853 & 1974 & 2071 \\& 1966 & 2084 & 1998 & 2179 & 1988 & 2002 & 2178 & 1995 & 2076 & 1873\end{array}$$ 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-B, what should be the conclusion for the Levene's test for homogeneity of variances at a 5% level of significance?

• A) There is insufficient evidence that the variances are all the same.
• B) There is sufficient evidence that the variances are all the same.
• C) There is insufficient evidence that the variances are not all the same.
• D) There is sufficient evidence that the variances are not all the same.

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Definitions:

Fixed Cost

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

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced, illustrating how fixed costs dilute over larger production volumes.

Average Variable Cost

The total variable cost divided by the quantity of output, representing the variable cost of producing one additional unit.

Marginal Cost

The financial outlay for making an additional unit of a product or service.