A Manufacturer of Automobile Transmissions Uses Three Different Processes

question 12

Multiple Choice

A manufacturer of automobile transmissions uses three different processes. Management ordered a study of the production costs to see if there is a difference among the three processes. A summary of the findings is shown next. In an ANOVA table,what are the degrees of freedom for the treatment source of variation?

• A)2
• B)3
• C)10
• D)27

---

Definitions:

Cash Discount

An incentive offered for the early payment of an invoice or bill, reducing the amount owed.

Complement Rate

The percentage subtracted from 100% to find the remaining portion of a rate, often used in insurance and finance to determine net rates.

Discount Date

The date on which a bill of exchange or other payment instrument is discounted, meaning it is computed for present value before its maturity date.

Freight Charge

A fee charged for the transportation of goods by freight services, often based on the weight and distance.