A Consumer Advice Web Site Tested a Fuel Additive A) Compute the Test Statistic
B) Can You Conclude That

question 4

Multiple Choice

A consumer advice web site tested a fuel additive. The distance that 12 cars could travel on five gallons of gasoline was recorded without and then with the additive. The results were as follows. $$\begin{array} { l | c c c c c c c c c c c c } \text { Car } & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 & 10 & 11 & 12 \\\hline \text { No Additive } & 105 & 139 & 185 & 108 & 187 & 134 & 170 & 161 & 145 & 115 & 190 & 121 \\\text { With additive } & 115 & 157 & 191 & 108 & 197 & 139 & 183 & 168 & 159 & 115 & 193 & 127\end{array}$$ a) Compute the test statistic
b) Can you conclude that the median distance traveled with the additive difference from the median
Distance traveled with the additive? Use the α = 0.05 level of significance.

• A) a) S=9
• b) We can conclude that the median distances are different.
• B) a) S=12
• b) We cannot conclude that the median distances are different.
• C) a) S=12
• b) We can conclude that the median distances are different.
• D) a) S=9
• b) We cannot conclude that the median distances are different.

---

Definitions:

Testing Prototype

The process of evaluating the initial example of a product to assess its functionality, design, and performance before mass production.

Batch-Level Activity

Costs or activities that are incurred every time a batch is produced, regardless of the size of the batch; part of activity-based costing.

Traditional Costing

A costing method that allocates factory overhead to products based on volume-related measures, such as labor hours or machine hours.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate estimated manufacturing overhead costs to individual units of product based on a chosen activity base.