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:

Common Stock

A type of equity security that represents ownership in a corporation, providing voting rights and the potential for dividend payments.

Par Value

the face value of a bond or stock, as stated by the issuing company, not necessarily its market value.

Convertible Preferred Stock

A type of preferred stock that grants the holder the option to convert the stock into a set number of shares of common stock, usually at any time after a predetermined date.

Common Stock

Common stock represents ownership shares in a corporation, giving holders voting rights and a share in the company's profits through dividends.