One-Way Analysis of Variance Is Being Used to Test the Equality

question 42

Multiple Choice

One-way analysis of variance is being used to test the equality of three population means using samples of size 8 from the first population, 11 from the second population and 7 from the third population.The test statistic (F_stat) is 2.712.The significance level is set at 5%.Report your conclusion.

• A)Since the test statistic (F_stat) is greater than the critical value (F_c) for the test, we reject the "no difference" null hypothesis.
• B)Since the test statistic (F_stat) is less than the critical value (F_c) for the test, we cannot reject the "no difference" null hypothesis.
• C)Since the test statistic (F_stat) is greater than the critical value (F_c) for the test, we cannot reject the "no difference" null hypothesis.
• D)Since the test statistic (F_stat) is less than the critical value (F_c) for the test, we reject the "no difference" null hypothesis.

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Definitions:

Direct Labor-Hours

Direct labor-hours are the total time workers spend creating a product or providing a service, directly correlated to the volume of production.

Variable Overhead

Indirect production costs that vary with the level of output, such as utilities or indirect materials used in the production process.

Direct Materials

The raw materials that are directly used in the manufacturing process of a product and are easily traceable to that product.

Direct Labor-Hours

A measure of the work done by manufacturing employees directly involved in the production process, typically quantified in hours.