SCENARIO 11-3
as Part of an Evaluation Program, a Sporting

question 156

Short Answer

SCENARIO 11-3
As part of an evaluation program, a sporting goods retailer wanted to compare the downhill coasting
speeds of 4 brands of bicycles. She took 3 of each brand and determined their maximum downhill
speeds. The results are presented in miles per hour in the table below. $$\begin{array} { ccccc} \underline{\text { Trial }} & \underline{\text { Barth } }& \underline{ \text { Tornado } }& \underline{\text { Reiser }} & \underline{ \text { Shaw }} \\1 & 43 & 37 & 41 &43 \\2 & 46 & 38 & 45 & 45 \\3 & 43 & 39 & 42 & 46\end{array}$$
-Referring to Scenario 11-3, the null hypothesis for Levene's test for homogeneity of variances is a) $H _ { 0 } : \mu _ { A } = \mu _ { B } = \mu _ { C } = \mu _ { D }$
b) $H _ { 0 } : M _ { A } = M _ { B } = M _ { C } = M _ { D }$
c) $H _ { 0 } : \sigma _ { A } ^ { 2 } = \sigma _ { B } ^ { 2 } = \sigma _ { C } ^ { 2 } = \sigma _ { D } ^ { 2 }$
d) $H _ { 0 } : \pi _ { A } = \pi _ { B } = \pi _ { C } = \pi _ { D }$

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Definitions:

Book Value

The net value of a company's assets minus its liabilities, often in relation to an individual asset or the company as a whole.

Plant Assets

Long-term tangible assets used in the operation of a business and not expected to be converted to cash in the short term.

Land Improvements

Expenses for enhancements made to a parcel of land to make it more usable, which do not directly include the land itself but, for example, landscaping, parking lots, and fences.

Depreciated

Refers to the reduction in value of an asset over time due to wear and tear or obsolescence.