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TABLE 11-7
A student team in a business statistics course designed an experiment to investigate whether the brand of bubblegum used affected the size of bubbles they could blow. To reduce the person-to-person variability, the students decided to use a randomized block design using themselves as blocks. Four brands of bubblegum were tested. A student chewed two pieces of a brand of gum and then blew a bubble, attempting to make it as big as possible. Another student measured the diameter of the bubble at its biggest point. The following table gives the diameters of the bubbles (in inches) for the 16 observations.
-Referring to Table 11-7, what are the degrees of freedom of the F test statistic for testing the block effects?
Differential Costs
The difference in cost between two alternative decisions, or a change in expenses that would occur due to a particular choice.
Differential Analysis
The area of accounting concerned with the effect of alternative courses of action on revenues and costs. Also called incremental analysis.
Unprofitable Segment
A part of an organization that consistently fails to contribute a positive net income or adds a financial loss to the company's overall performance.
Opportunity Cost
The revenue that is foregone from an alternative use of an asset, such as cash.
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