Crawford Industries Purchases Step-Down Electrical Converters from Two Suppliers

question 83

Multiple Choice

Crawford Industries purchases step-down electrical converters from two suppliers.The converters from the two suppliers appear to have the same average life (measured in hours) but the variability in useful life appears be different for the two suppliers.In random samples of 8 converters from supplier A and 8 converters from supplier B, the variance in sample A was 1600; the variance in sample B was 3800.Assume that the life of the converters is normally distrusted in each population..Test the null hypothesis that the variance of population B is no greater than the variance of population A, against the alternative hypothesis that the variation of population B variance is greater than the variance of population A.Use a significance level of 5% for this one-tailed test and report your conclusion.

• A)Since F_stat is greater than F_c, we cannot reject the "variance of B no greater than variance of A" null hypothesis.
• B)Since F_stat is less than F_c, we cannot reject the "variance of B no greater than variance of A" null hypothesis.
• C)Since F_stat is less than F_c, we can reject the "variance of B no greater than variance of A" null hypothesis.
• D)Since F_stat is greater than F_c, we can reject the "variance of B no greater than variance of A" null hypothesis.

---

Definitions:

Ice Cream Machine

A device designed to produce ice cream on a commercial or domestic scale by freezing and churning ingredients.

Tax Schedule

A detailed plan or system for calculating tax liabilities based on income, deductions, and credits according to relevant laws and regulations.

Taxable Income

The amount of income used to calculate how much tax an individual or a company owes to the government.

Total Tax

The combined amount of all taxes owed by an individual or corporation in a given year, including federal, state, and local taxes.