A National Manufacturer of Ball Bearings Is Experimenting with Two

question 27

Multiple Choice

A national manufacturer of ball bearings is experimenting with two different processes for producing precision ball bearings. It is important that the diameters be as close as possible to an industry standard. The output from each process is sampled and the average error from the industry standard is calculated. The results are presented below. The researcher is interested in determining whether there is evidence that the two processes yield different average errors. Assume that the population standard deviations are equal. This example is what type of test?

• A) One sample test of means.
• B) Two sample test of means.
• C) Paired t-test.
• D) Test of proportions.

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Definitions:

Marginal Cost

The cost incurred by producing one additional unit of a good or service.

Simultaneous Consumption

A characteristic of services that indicates they are consumed at the same time as they are produced.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of production and the quantity of output increase.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different consumers, based on market segments, capacity to pay, or purchasing contexts.