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

question 166

Multiple Choice

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. $\begin{array}{cccc}&&&\text { Employee }\\&&\mathbf{A}&\mathbf{B}&\mathbf{C}\\&\text { I } & 16,18,19 & 15,17,20 & 14,18,16 \\\text { Machine } &\text { II } & 20,27,29 & 25,28,27 & 29,28,26 \\&\text { III } & 15,18,17 & 16,16,19 & 13,17,16\end{array}$

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

$\begin{array}{lrrr}\text { SOURCE } & D F & S S & M S \\\text { MACHINE } & 2 & 588.74 & 294.37 \\\text { EMPLOYEE } & 2 & 2.07 & 1.04 \\\text { INTERACTION } & 4 & 15.48 & 3.87 \\\text { ERROR } & 18 & 98.67 & 5.48 \\\text { TOTAL } & 26 & 704.96 &\end{array}$ 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. What is the value of the test
Statistic, F?

• A) F = 0.1898
• B) F = 0.2687
• C) F = 5.2692
• D) F = 53.7172

Understand the treatment and impact of variances at year-end, including closing variances to Cost of Goods Sold.

Practice cash management within a manufacturing context, tracing the impact of manufacturing operations on cash flows.

Understand the concept of standard cost systems, including the recording of transactions at standard costs.

Calculate variances between actual and standard costs for direct materials and direct labor.

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