An Airline Wants to Select a Computer Software Package for Its

question 25

Multiple Choice

An airline wants to select a computer software package for its reservation system. Four software packages (1, 2, 3, and 4) are commercially available. An experiment is set up in which each package is used to make reservations for 5 randomly selected weeks and data on the number of passengers that are bumped over a month are collected. (A total of 20 weeks was included in the experiment.) The variability of the number of passengers that are bumped is found to be roughly the same for the 4 packages. The distribution on the number of passengers that are bumped has been found out to be right-skewed for package 1 and 4, left-skewed for package 2 and normal for package 3. Which of the following tests will be the most appropriate to find out if the mean number of passengers being bumped over a month is the same across the 4 packages?

• A) Paired t test
• B) Pooled-variance t test
• C) One-way ANOVA F test for differences among more than two means
• D) Kruskal-Wallis rank test

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Definitions:

Debt-For-Equity Swaps

A financial restructuring tool where a portion of debt is exchanged for a pre-determined amount of equity or stock.

Fair Value

An estimation of the market value of an asset or liability based on the assumptions market participants would use when pricing the asset or liability.

Derivatives

Financial instruments whose value is derived from the value of one or more underlying assets or indices.

Hedges

Financial strategies or instruments used to offset potential losses or gains in another investment or position.