Use the Minitab Display to Test the Indicated Claim $\quad$

question 87

Essay

Use the Minitab display to test the indicated claim. 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. $\begin{array}{cccc}&&&\text { Employee }\\&&\mathbf{A}&\mathbf{B}&\mathbf{C}\\&\text { I } & 31,34,32 & 29,23,22 & 21,20,24 \\\text { Machine } &\text { II } & 19,26,22 & 35,33,30 & 25,19,23 \\&\text { III } & 21,18,26 & 20,23,24 & 36,37,31\end{array}$

$\quad$$\quad$$\text { ANALYSIS OF VARIANCE ITEMS }$

$\begin{array}{lrrr}\text { SOURCE } & \text { DF } &{\text { SS }} & \text { MS } \\\text { MACHINE } & 2 & 1.19 & .59 \\\text { EMPLOYEE } & 2 & 5.85 & 2.93 \\\text { INTERACTION } & 4 & 710.81 & 177.70 \\\text { ERROR } & 18 & 160.00 & 8.89 \\\text { TOTAL } & 26 & 877.85 &\end{array}$ 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 machine has no
effect on the number of items produced.

Understand the reinvestment assumptions implicit in the NPV and IRR methods.

Identify incremental cash flows associated with capital budgeting projects.

Recognize the initial steps and investment requirements in the capital budgeting process.

Analyze the deficiencies of the payback method in evaluating capital projects.

---

Definitions:

Correction Factor

An adjustment applied to a calculation or a measurement to correct or compensate for a systematic bias or deviation.

Null Hypotheses

A statement suggesting that there is no significant effect or difference, and any observed deviation is due to chance.

Alternative Hypotheses

In statistical testing, these are hypotheses that suggest there is a difference or effect, in contrast to the null hypothesis, which suggests there is no effect.

Sinus Drug

Medication intended to treat sinus conditions, often focusing on reducing inflammation, congestion, or infection within the sinus cavities.