Draw Interaction Plots
-A Builder Has Two Crews That Construct $\alpha = 0.05$

question 6

Multiple Choice

Draw Interaction Plots
-A builder has two crews that construct homes. He is interested in determining if there is a difference in the time it takes the crews to build three different styles of homes. The time in days for each crew is given below. What type of interaction is revealed by the interaction plot? Test at $\alpha = 0.05$ .
$\begin{array}{|l|c|c|c|}\hline & \text { Cottage } & \text { Bi-Level } & \text { 2 story } \\\hline \text { Smith } & 27,34,30,35,39 & 25,47,44,30,39 & 28,24,29,32,41 \\\hline \text { Jones } & 46,41,37,26,24 & 31,39,44,45,32 & 43,45,44,36,31 \\\hline\end{array}$

• A) No interaction
• B) Significant interaction
• C) Some interaction
• D) Complete interaction

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Definitions:

Variable Production Costs

Expenses that fluctuate in direct proportion to production volume, like labor and materials.

Break-even

The point at which total cost and total revenue are equal, meaning there is no net loss or gain.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Absorption Costing

An approach in accounting that comprises all costs of manufacturing, like direct materials, direct labor, and both types of manufacturing overheads (variable and fixed), in determining a product's cost.