SCENARIO 11-7 a Student Team in a Business Statistics Course

question 37

True/False

SCENARIO 11-7 A student team in a business statistics course designed an experiment to investigate whether the brand of bubblegum used affected the size of bubbles they could blow.To reduce the person-to- person variability, the students decided to use a randomized block design using themselves as blocks. Four brands of bubblegum were tested.A student chewed two pieces of a brand of gum and then blew a bubble, attempting to make it as big as possible.Another student measured the diameter of the bubble at its biggest point.The following table gives the diameters of the bubbles (in inches)for the 16 observations.
-Referring to Scenario 11-7, the randomized block F test is valid only if the population of diameters has the same variance for the 4 brands.

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Definitions:

Adverse Selection

A phenomenon where parties at a disadvantage due to asymmetric information are selected against in a market transaction, often leading to market failure.

Unobservable Actions

Actions taken by individuals or entities that cannot be seen or measured directly, often inferring effects through outcomes or reports.

Moral Hazard

A situation in economic transactions where one party is willing to take risks because the negative consequences of the risk will be borne by another party.

Health Care Insured

Refers to individuals or entities that are covered under a health insurance plan, providing financial protection against medical expenses.