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SCENARIO 11-13
An important factor in selecting database software is the time required for a user to learn how to use
the system. To evaluate three potential brands (A, B and C) of database software, a company
designed a test involving five different employees. To reduce variability due to differences among
employees, each of the five employees is trained on each of the three different brands. The amount of
time (in hours) needed to learn each of the three different brands is given below:
-Referring to Scenario 11-13, the relative efficiency means that 15.23 times as
many observations in each brand would be needed in a one-way ANOVA design as compared to
the randomized block design in order to obtain the same precision for comparison of the different
means.
Machine Hours
A measure of production or work performed, calculated as the number of hours a machine is operated.
Lease
A contractual agreement where one party (the lessor) allows another party (the lessee) to use an asset for a specified period in exchange for payment.
Average Total Cost
The total cost of production (fixed plus variable costs) divided by the quantity of output produced, representing the average cost per unit of output.
Marginal Cost
The amount spent on producing an incremental unit of a product or service.
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