To Compare the Cost of Three Shipping Methods, a Firm

question 69

Multiple Choice

To compare the cost of three shipping methods, a firm ships material to each of four different destinations over a six-month period. The average cost per shipment is shown below. $\begin{array}{|c|c|c|c|c|}\hline\text { Shipper } & \text { Toledo } & \text { Oshawa } & \text { Janesville } & \text { Dallas } \\\hline \text { SpeedyShip } &355 & 435 & 422 & 518 \\\hline \text { GetItThere } &342 & 441 & 402 & 488 \\\hline \text { WeR Tops } &361 & 430 & 435 & 528 \\\hline\end{array}$ Which test would be appropriate?

• A)Independent samples t-test
• B)Two-factor ANOVA with replication
• C)Dependent (paired-samples) t-test
• D)Two-factor ANOVA without replication

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Definitions:

Spot Rate

The current market price at which a particular currency can be bought or sold for immediate delivery.

Forward Rate

The agreed-upon exchange rate for a currency transaction that will occur at a future date.

Forward Contract

A financial agreement to buy or sell an asset at a future date at a price established at the outset, used to hedge against price fluctuations.

Spot Rate

The current market price at which a currency can be bought or sold for immediate delivery and payment.