A Manager Is Interested in Testing Whether Three Populations of Interest

question 71

Multiple Choice

A manager is interested in testing whether three populations of interest have equal population means. Simple random samples of size 10 were selected from each population. The following ANOVA table and related statistics were computed: Conduct the appropriate test of the null hypothesis assuming that the populations have equal variances and the populations are normally distributed. Use a 0.05 level of significance.

• A) Using the F test approach, because F = 3.354 < critical F = 9.84, we reject the null hypothesis and conclude that the population means are not all equal.
• B) Using the F test approach, because F = 3.354 < critical F = 9.84, we do not reject the null hypothesis and conclude that the population means are all equal.
• C) Using the F test approach, because F = 9.84 > critical F = 3.35, we reject the null hypothesis and conclude that the population means are not all equal.
• D) Using the F test approach, because F = 9.84 > critical F = 3.35, we do not reject the null hypothesis and conclude that the population means are all equal.

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Definitions:

Monopolistically Competitive

Refers to a market structure where many firms sell products that are similar but not identical, leading to competition based on product differentiation.

Normal Profits

The minimum profit necessary for a company to remain competitive in the market, equivalent to the opportunity cost of capital.

Efficiently

Performing or operating in the best possible manner with the least waste of time and effort.

Product Differentiation

Identifying unique features of a product or service to make it more attractive to a specified segment of the market.