SCENARIO 10-14 the Use of Preservatives by Food Processors Has Become a Become

question 132

Multiple Choice

SCENARIO 10-14
The use of preservatives by food processors has become a controversial issue.Suppose two preservatives are extensively tested and determined safe for use in meats.A processor wants to compare the preservatives for their effects on retarding spoilage.Suppose 15 cuts of fresh meat are treated with preservative I and 15 are treated with preservative II,and the number of hours until spoilage begins is recorded for each of the 30 cuts of meat.The results are summarized in the table below.

-Referring to Scenario 10-14,what assumptions are necessary for testing if the population variances differ for preservatives I and II?

• A)Both sampled populations are normally distributed.
• B)Both samples are random and independent.
• C)Neither (a)nor (b)is necessary.
• D)Both (a)and (b)are necessary.

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Definitions:

Diversifiable Risk

The portion of an investment's risk that can be reduced or eliminated through the practice of diversifying one's investment portfolio across various assets.

Systematic Risk

The inherent risk affecting the overall market or a particular sector, which cannot be eliminated through diversification.

Market Risk

The risk of losses in investments due to factors that affect the entire market or asset class, such as economic changes or political events.

Firm-specific Risk

The type of risk that affects a particular company or industry, also known as unsystematic risk.