A Manufacturer of Automobile Transmissions Uses Two Different Processes

question 29

Multiple Choice

A manufacturer of automobile transmissions uses two different processes. Management ordered a study of the production costs to see if there is a difference between the two processes. A summary of the findings is shown next. What is the critical value of F at the 1% level of significance?

• A)9.46
• B)8.29
• C)8.18
• D)4.61

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Definitions:

Sample Evidence

Data collected from a sample that is used to make inferences or conclusions about a larger population.

Level Of Significance

A predetermined threshold of probability below which the null hypothesis is rejected in hypothesis testing, typically set at 0.05 (5%).

Null Hypothesis

A hypothesis stating there is no significant difference or effect, or a specified parameter equals a certain value, in the population being studied.

Critical Value(s)

Threshold(s) in hypothesis testing that define the boundary or boundaries for rejecting the null hypothesis.