A Car Salesman Claims That the Variance of Prices on Convertibles

question 45

Multiple Choice

A car salesman claims that the variance of prices on convertibles is higher than the variance on station wagons.The standard deviation of 16 convertibles is $6,800 and the standard deviation of 24 station
Wagons is $3,900.For α = 0.05, what is the test value?

• A)3.00
• B)3.04
• C)2.78
• D)2.33

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Definitions:

Shipping Cost

The expense incurred to transport goods from one place to another, typically paid by the seller or the buyer.

Factor Weighting Technique

A method used in decision-making that assigns different weights to various factors or criteria according to their importance or relevance.

Supplier Selection

The process of evaluating and choosing suppliers based on criteria such as price, quality, reliability, and service to ensure the best value for the purchasing organization.

Supplier Criteria

Supplier criteria are the set standards or requirements that a company uses to evaluate and select suppliers, including quality, reliability, cost, and delivery performance.