SCENARIO 11-1 an Airline Wants to Select a Computer Software Package for Package

question 51

Multiple Choice

SCENARIO 11-1
An airline wants to select a computer software package for its reservation system.Four software packages (1,2,3,and 4) are commercially available.The airline will choose the package that bumps as few passengers as possible during a month.An experiment is set up in which each package is used to make reservations for 5 randomly selected weeks.(A total of 20 weeks was included in the experiment. ) The number of passengers bumped each week is obtained,which gives rise to the following Excel output:

-Referring to Scenario 11-1,the among-group (between-group) mean squares is

• A)8.525
• B)70.8
• C)212.4
• D)637.2

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Definitions:

Payback Period

The length of time required to recover the cost of an investment or determine how long it takes for an asset to generate enough cash flow to cover its original cost.

Cost Recovery

The process by which an entity regains the capital expenditure of an investment over time, through various methods such as depreciation, amortization, or depletion.

Payback Periods

The length of time required to recover the cost of an investment or project.

Net Cash Flows

The difference between a company's cash inflows and cash outflows during a specific period.