Two Soft Drink Machines Dispense Liquids of 10 Ounces, on the Average

question 252

Short Answer

Two soft drink machines dispense liquids of 10 ounces, on the average. The question is whether the two machines are equally consistent (i.e., equally variable) in the dispensing of the liquid. To answer this question, a sample of size 10 was obtained from each machine and the sample standard deviations were computed to be = 1.87 ounces and = 1.25 ounces. Perform the appropriate test for equality of variances using = 0.05.
Test Statistic = ______________
Reject Region: Reject H₀ if F> ______________
Conclusion: ______________
One ______________ conclude that there is a significant difference in the variability of liquid dispensed between the two machines.

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Definitions:

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for significant differentiation and competition on factors other than price.

Pricing Power

The ability of a company or entity to control or influence the price of its products or services in the market.

Product Differentiation

The process businesses use to make a product more attractive by distinguishing it from similar products through unique features, branding, and quality.

Monopolistically Competitive

A market structure where many companies sell products that are similar but not identical, allowing for competition based on factors other than price, such as quality and branding.