Acme Taxi Has Two Taxi Cabs

question 46

True/False

Acme Taxi has two taxi cabs. The manager tracks the daily revenue for each cab. Over the past 20 days, Cab A has averaged $76.00 per night with a standard deviation equal to $11.00. Cab B has averaged $200.00 per night with a standard deviation of $18.00. Based on this information, Cab B has the greatest relative variation.

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Definitions:

Statistical Process Control

A method used to monitor, control, and ensure the quality of processes by using statistical methods.

Type II Error

A statistical error that occurs when a hypothesis test fails to reject a false null hypothesis, also known as a "false negative."

Standard Deviation

A measure of the dispersion or spread of a set of data from its mean value.

Process Distribution Mean

The average value or central tendency of a distribution for a process' outcomes over a period of time.