A Manager Records the Production Output of Three Employees Who

question 57

Essay

A manager records the production output of three employees who each work on three different machines for three different days. The sample results are given below and the Minitab results follow. $$\begin{array}{l}\begin{array}{rccc} &&\text { Employee }\\& \text { A } & \text { B } & \text { C } \\\text { I } & 23,27,29 & 30,27,25 & 18,20,22 \\\text { Machine II } & 25,26,24 & 24,29,26 & 19,16,14 \\\text { III } & 28,25,26 & 25,27,23 & 15,11,17\end{array}\\\\\text { ANALYSIS OF VARIANCE ITEMS }\\\begin{array} { l r r r } \text { SOURCE } & \text { DF } & { \text { SS } } & { \text { MS } } \\\text { MACHINE } & 2 & 34.67 & 17.33 \\\text { EMPLOYEE } & 2 & 504.67 & 252.33 \\\text { INTERACTION } & 4 & 26.67 & 6.67 \\\text { ERROR } & 18 & 98.00 & 5.44 \\\text { TOTAL } & 26 & 664.00 &\end{array}\end{array}$$ Assume that the number of items produced is not affected by an interaction between employee and machine. Using a 0.05 significance level, test the claim that the choice of employee has no effect on the number of items produced.

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Definitions:

Economic Profit

Profits earned by a firm after accounting for both explicit costs and opportunity costs.

Cartel

A group of independent companies that collaborate to control prices and production in order to monopolize a market.

Oligopoly

A market structure dominated by a small number of large firms, offering similar or identical products, with significant barriers to entry for new competitors.

Joint Profits

The total earnings generated by two or more firms collaborating in a venture or partnership.