A Firm Is Concerned with Variability in Hourly Output at Several

question 74

Multiple Choice

A firm is concerned with variability in hourly output at several factories and shifts. Here are the results of an ANOVA using output per hour as the dependent variable (some information is missing) . $$\begin{array} { | l | c | c | c | c | } \hline \text { Source } & \text { Sum of Squares } & \text { df } & \text { Mean Square } & \text { FRatio } \\\hline \text { Factory } & 19012.5 & 1 & 19012.5 & 26.427 \\\hline \text { Shift } & 258.333 & 2 & 129.167 & 0.180 \\\hline \text { Factory*Shift } & 80908.333 & 2 & 40454.167 & 56.230 \\\hline \text { Error } & 8633.333 & 12 & 719.444 & \\\hline \text { Total } & 108812.5 & 17 & 6400.735 & \\\hline\end{array}$$ The original data matrix has how many treatments (rows × columns) ?

• A)4
• B)6
• C)3
• D)8

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Definitions:

Accounts Receivable Turnover

A financial ratio indicating how efficiently a company collects its accounts receivable, calculated as net credit sales divided by average accounts receivable.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management and sales performance.

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers for goods or services sold on credit.

Liquidity

A measure of how easily assets can be converted into cash without affecting their market price.